Boyd County ISD: A K12 District Case Study
While Washington, D.C. buzzes with conversations around the Affordable Care Act “repeal and replace,” the work of filing ACA documentation with the IRS for 2016 continues (as does the nightmare of correct codes), with diligence for most employers.
The compliance and reporting mandates of the Affordable Care Act affect employers with more than 50 full-time employees. K12 districts meeting these criteria often face unique issues when fulfilling the mandate for tracking and reporting to remain compliant and using correct codes.
Boyd County Independent School District in Texas understands the pressures for accuracy and efficiencies in the preparation of 1095s and 1094s for ACA reporting. Located in Boyd, Texas, just northwest of the Dallas/Fort Worth Metropolitan Area, the district also serves a portion of the Briar community in the next county. The district uses a specialized accounting, finance and budget software for its everyday payroll and accounting services.
After a year with an ACA vendor that provided limited support, Boyd County ISD looked for a solution with user-friendly behavior and technical support upfront. The district eventually made the switch to PSST’s ACA-Track™.
Problem: The Nightmare of Codes
“The coding is a nightmare, but our own software could do the work,” said Boyd County ISD Personnel and Payroll Coordinator Terry Williams. “Since it required specialty coding, and there was a healthy learning curve, we moved to PSST.”
She added, “The previous ACA… vendor really didn’t give us any direct help, and so we struggled with their software as well last year. And, we found that their website resources didn’t provide enough answers.”
Solution: How PSST’s ACA-Track Helped
Williams cited PSST’s responsiveness and depth of ACA knowledge, as well as the accuracy of the ACA-Track software, as key factors for how smoothly ACA reporting has been for 2016 compared to 2015.
“PSST has great account executives… responsible for following up on calls and emails. When we have individual coverage issues and we are looking to import or export data, (PSST) has been a big help,” Williams said.
“PSST staff is quite knowledgeable about the ACA tracking requirements and the process to completion via their software,” she shared. “PSST fees are reasonable, and the software is more accurate than last year’s selection. The PSST team is more knowledgeable about IRS codes and what to do. They take out the guesswork I would have to do otherwise.”
Success: More Manageable & Easier to Understand
In retrospect, Williams says that the PSST ACA-Track web-based product has already made a difference. “It’s just easier to understand the whole ACA tracking process and what IRS really wants with PSST’s [ACA-Track product] website. I watched the webinar on the product, and so when I saw the software, it was so much easier to use.”
This year, Boyd ISD will print out its 1095s and review each one, since the quantity is manageable, Williams said.
“There are always a few employees who have left or had a baby and… substitutes who may have to be reviewed before sending. In our Texas system, if the employee wanted insurance as a substitute, they had to pay for all of it. For most employees, the district pays for the full price of the minimum,” she explained.
Williams has a goal of completing all the ACA tracking work due to IRS in advance by the end of January, even though the IRS has extended the deadline for 1095s to employees by March 2. “I like to get these things done,” she said.
In IRS Notice 2016-70 issued November 18, 2016, self-insured employers, applicable large employers, and insurers are to now provide 2016 ACA information returns to individuals by March 2, 2017, instead of the previous deadline of January 31, 2017.
(The notice, however, does not extend the due date for filing information returns with the IRS. Forms 1094-B, 1095-B, 1094-C, or 1095-C, remain due to IRS on February 28, 2017, if not filing electronically, or March 31, 2017, if filing electronically.)