AGE BANDED setups are easily tracked in the ACA Cloud Solution and the 1095-C Part II Line 15 will reflect accurately for each employee taking a particular band. Age Banded simply means that for different ages of the employee there is an incremental increase in the monthly health deduction. For example employees between age 20 and 29 are offered a plan costing $95.00 per month. An employee from 30- 39, the cost is $150.00. An employee between 40 and 49, the cost is $210.00 and the cost over 50 years of age is 290.00. The age is determined from the Birthdate that is uploaded on the Employee file.
WAGE BANDED setups, likewise, are easily tracked in the ACA Cloud Solution and the 1095-C Part II Line 15 will reflect accurately for each employee taking a particular band. Wage Banded simply means that for differing hourly rates of the employee there is an incremental increase in the monthly health deduction. For example employees earning a hourly wage between $8.00 and $11.99 are offered a plan costing the employee $95.00 per month. An employee with a rate between $12.00 and $15.99 , the cost is $150.00. An employee with a hourly rate between $16.00 and $23.99, the cost is $210.00 and the cost over $ 24.00 is $310.00. The wage rate is determined from the Transaction file uploaded with the Units To Pay, and Amount columns containing values..
The way to get to the banded fields is to click on Configuration>ACA Plan>select a least cost plan>+ADD NEW RECORD. Fill out each field as usual but you will click on the down arrow on Cost Derived From: field. There you will see three choices. Choose Age or Wage. Then on the big blue line select the word BANDED in gray. Then select + ADD. After filling in the appropriate band data, be sure to click on the big blue Update above the blue line.
The ACA Information Assignment window must be completed in order for the 1095-C Part II to accurately reflect the offerings of Heath to the employee population.
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Last Review: 5/21/2020 – Revision: 2.0
ACA Compliance Solution
Categories: ACA Plan Setup; Year End – 1095-C and Filing
Keywords: Age Banded; Wage
KB Number: KB14-064