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How to set up medical plan deduction(s) for ACA when there are 2 minimum employee contribution rates?

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Our new client reports to ACA. 

2 medical plans are currently offered to the employees.  1 for the employee plan at $50 MINIMUM EMPLOYEE CONTRIBUTION per month and 1 for the employee family plan at $150 MINIMUM EMPLOYEE CONTRIBUTION per month.  Do I need to set this up as 2 separate deductions that are flagged as ACA related, setting the ACA tab with the Minimum Employee Contribution of $50 for 1 code and $150 for the second code?  Then just assign the appropriate deduction code at the employee level, set the actual deduction amount for the payroll processing, and the ACA reporting screen will display the minimums $50 or $150 appropriately? 

Thank you

 

 

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Best answer by pbennett 9 July 2022, 00:03

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pbennett
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yes you should set it up as 2 separate deductions. I would also recommend setting up one deduction for each rate (employee,  employee + children, employee + spouse etc.) even though this will take more time to setup you will be happy you did that next year when you update the rates. if you follow this advise you will only have to update the rates one time per rate at the setup level and not at the employee level.

Patricia Bennett
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Thank you PBennett~~!
Most definitely, I will follow your instructions to the letter! I could get away with 1 code, since the Minimum Contribution for ACA reporting is $50 no matter what plan the employee chooses ($50 employee, $150 family) and set the actual deduction amounts at the employee level.  On your advise, I will set up 2 codes, both Minimum Contribution of $50, and set the actual employee deduction amounts at the setup level.  Your input is the bomb!

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PB, I forgot to mention that since I put out my original question, I’ve learned that my client only reports ACA on the “Employee” ($50 Minimum Employee Contribution) therefore, both my deductions would have the ACA Minimum Employee Contribution of $50, but then set the Employee Deductions tab Fixed amount at $50 / $150 respectively. Agree? 

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