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Exclude Active Employee and Waived Employees

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Configuration > ACA Setup > Exclude Active Employee

The exclude active employee window is used to define which employees will be exempt from the ACA
calculation even though they are active employees.

To add an employee click the “Add new record” button. You can also edit or delete a record.

Employee ID: Once the Employee ID is selected, the first name and last name will automatically
populate.

Waiver Date: Specify a date for the waiver.

Waiver Code: Specify a waiver code for this employee. The waiver code is the code(s) that were set up
during waiver code setup will appear as choices in the drop down list.

Print: Clicking the print button will display the Exclude Active Employee report, depicted below. There
are several export options to save as, (ie. PDF or Excel)

Exclusion of people is optional for most ACA reporting. The only time it must be done is when you
have fewer than 50 employees and are applying for a Small Business Health Care Tax Credit. The
following individuals are not considered employees for purposes of full-time equivalent calculation:

  • owners of the small business, such as sole proprietors, partners, shareholders owning more than
    2% of an S corporation or more than 5% of a C corporation
  • a spouse of an owner
  • family members of an owner, including:
    • a child
    • a grandchild
    • a sibling or step-sibling
    • a parent or ancestor of a parent
    • a stepparent
    • a niece or nephew
    • an aunt or uncle
    • a son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law or sister-in-law
  • a spouse of any family member listed above

To ensure a 1095-C is not generated for exempt employees, make sure their employee record has a Form
Exempt status.

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