Effective January 2015, Affordable Care Act (ACA) fees will be charged to department accounts for eligible employees as determined by HR. Although the fee will be allowable on RC accounts, an RC account cannot be used as the default ACA fee account provided to HR by a department. For questions regarding the fee, eligibility of employees, or what department account will be charged, please contact HR at hr.ACAHealthFeeInfo@hr.msu.edu or visit http://www.hr.msu.edu/healthystate/.
Once charged to the department, the expected ACA fee of $417 can be allocated to the appropriate account(s), including RC accounts, using a Distribution of Income and Expense (DI) form in KFS. To be consistent with MSU procedures, if the fee is being reallocated, it must be divided evenly amongst the accounts on which the staff member was paid for the month and not be allocated based on effort/number of hours worked on each account. (Please note, if reallocating to an RC account after 90 days, a General Error Correction must be used as this will be considered a late cost transfer.) The instructions/examples below will assist in the timely processing of the reallocations.
- Determine the accounts to which the fee should be allocated. As a reminder, payroll account information is available in BI report HRP062 titled Salary Distribution by Person.
- Create a PDF of the report you run for each individual.
- Initiate a DI in the KFS system after the ACA Fee is charged to the department/default account.
- Description should read "Distribute ACA Fee"
- Explanation should read "Distribute the (MONTH, YEAR) ACA Fee to (ACCOUNT/S) for (EMPLOYEE NAME)" (see example below). The accounts listed should represent the number of projects the individual worked on throughout the month.
- The "From" and "To" sections should show the following (see below for example):
- The "From" accounting line should reflect the department account the ACA fee was billed to, object code #6645, and the total amount billed.
- The "To" accounting line should reflect the account(s) that the employee worked on for that month, object code #6645, and the amount to allocate. Please remember to equally distribute the total amount of the fee between all accounts being charged.
- Attach the PDF you created for documentation.
Q: What if the employee worked on two RC accounts for the month of January?
A: The total amount must be evenly allocated between the two accounts.
Q: What if the employee worked on three RC accounts and one unrestricted account for the month of January?
A: The total amount must be evenly allocated between the four accounts.
Q: What if the employee only worked one hour on RC55555 and the rest of their time on RC11111 for the month of January?
A: The total amount must be evenly allocated between the two RC accounts and not based off of the number of hours worked.
Q:What if the employee did not work any hours for the month of January?
A: Run report HRP062 for the month the employee most recently worked prior to January. Allocate the ACA fee based on the accounts that the staff member was paid for during the month the individual most recently worked.
For additional information and questions regarding charging the ACA fee to RC accounts, please contact Contract and Grant Administration, Transactions Group at firstname.lastname@example.org.