not!

One Size Fits AllEmployer Shared Responsibility Is

Determining how your business could be affected by Employer Shared Responsibility

(ESR) provision will be a complex and very difficult task – unless you take advantage

of the ESR solutions offered by Paychex. By looking at your business structure and

examining your business’ payroll, HR and benefits needs, we can provide you a variety

of solutions that best fits your needs – because ESR solutions are not “one size fits all.”

As an employer, there are many questions you need to answer in order to satisfy these complicated Affordable Care Act provisions.

“Am I an Applicable Large Employer?”

“How many full time equivalents

do I have?”

“Who are considered my full time employees?” “Does my plan

meet minimum essential

coverage?”

“Do I qualify for the transition

relief in 2015?”

BUSINESSES WITH

MIXED FULL-/PART-TIME

SIMPLE COMPLEX

Basic payroll needs Fixed hours for part-time employees

Small office, manufacturing, professional office

Next Step?Stay up-to-date with ESR provision details,

and learn about the services available to you.

BUSINESS REQUIREMENTS TYPICAL INDUSTRIES

“I’m not an applicable large employer (ALE) now,

but how will I know if I’m approaching the threshold?”

ESR NEEDS

20-40EMPLOYEES

Hours Worked ReportThis is a basic service if you do not need Paychex to provide calculations. The service provides:

• Employee work hours reported to Paychex payroll to assist in calculating the number of full-time employees and full-time equivalents (FTEs).

• You can run this report to help determine which employees work full time.

Instruction ManualPaychex provides this handy instruction manual, which shows how to use the Hours WorkedReport to calculate your employer status. It also contains valuable information about ESRprovisions, including tips on complying with the requirements.

Paychex Solution: Essential Payroll Data

* For employers with 50-99 full-time employees, including full-time equivalents (FTEs), there will be a one-year delay in enforcement of the ESR provisions until 2016. Employers must meet certain conditions to qualify for the transition relief and must certify in ESR reporting that they have met these conditions.

Companies with 100 or more full-time employees, including FTEs, are still subject to enforcement of the ESR provisions in 2015.

However, those employers who offer minimum essential health coverage to at least 70% of their workforce can avoid one of the potential ESR penalties. The relief may extend into 2016 for employers who have non-calendar-year plans in effect prior to February 10, 2014.

Variable hours for part-time employees Needs time and attendance solution

Retail, food service, construction

BUSINESS REQUIREMENTS TYPICAL INDUSTRIES

BUSINESSES WITH

MIXED FULL-/PART-TIME

SIMPLE COMPLEX

“I think I’m not an ALE, but with my variable-hour employees, I’m worried I may cross the

threshold and not know it.”

ESR NEEDS

40-60EMPLOYEES

Next Step?Learn how to track your employees’ monthly hours

to help determine your status an as ALE.

Applicable Large Employer Scheduled ReportThe Applicable Large Employer Scheduled Report calculates the total projected number of full-time employees and FTEs based on your monthly schedules. It is available if you are a Time and Labor Online client.

Paychex Solution: Workforce Management

Applicable Large Employer ReportThis report, available if you are a Time and Labor Online client, helps calculate the total number of full-time employees and FTEs an employer has per month, measured by punch-card entries. It lists the employees’ actual total paid and unpaid hours (including work, sick, personal, and vacation pay types) and average hours per month, so it shows the most accurate data for monthly hours.

Approaching Threshold Hours ReportThis report, which is also available if you are a Time and Labor Online client, lists employees who have time-card entries or punches within a set number of hours of the employer-defined threshold. It also lists employees and the number of hours.

SIMPLE COMPLEX

BUSINESSES WITH

MIXED FULL-/PART-TIME

CONTROLLED AND NON-CONTROLLED OWNERSHIP GROUPS

BUSINESS REQUIREMENTS TYPICAL INDUSTRIES

Doesn’t need time tracking/punch-in solution

Qualifies as applicable large employer

Offers health insurance to employees

Multi-site (franchise), fast food, hospitality, seasonal workers

“I’m an ALE, but I don’t know which employees put me at risk of penalties if I don’t offer them health coverage.”

ESR NEEDS

EMPLOYEES50+

Paychex Solution: Data AnalyticsData analytics from Paychex can:

• Help you determine if a provision of the Affordable Care Act (ACA) applies to you.• Perform needed calculations on various forms of data (e.g., employee information, benefits levels, tax rates).• Estimate potential fines and penalties resulting from not offering adequate and affordable coverage

to full-time employees and their dependents.

Applicable Large Employer (ALE) Analysis and MonitoringAutomated calculations and tracking on your behalf.

Full-Time Employee Analysis and MonitoringAutomated calculations and tracking on your behalf.

BUSINESSES WITH

CONTROLLED AND NON-CONTROLLED OWNERSHIP GROUPS

Qualifies as applicable large employerOffers health insurance to employeesNeeds benefits administration

Any industry

BUSINESS REQUIREMENTS TYPICAL INDUSTRIES

SIMPLE COMPLEX

ESR NEEDS

“I’m an ALE, but I don’t know if the coverage I’m offering meets the requirements of minimum essential coverage and affordability.”

50+EMPLOYEES

Next Steps?Get the facts about adequate and affordable coverage.

Paychex Solution: Data AnalyticsCoverage Adequacy and Affordability Analysis and Monitoring*This service — unique to Paychex because of its coordination between payroll and benefits systems — conducts tracking of coverage by employee for evaluation of adequacy, value, and affordability.

* Available only to Paychex Insurance Agency clients and Paychex PEO clients. Check with your Paychex representative for availability in your area.

Insurance sold and serviced by Paychex Insurance Agency, Inc., 150 Sawgrass Drive, Rochester, NY 14620. California license 0C28207.

End of Year ReportingWe’ve gone through the major steps in the ESR provisions – determining if the ESR provisions apply to you, identifying the full-time employees to offer coverage to, and whether your coverage is adequate and affordable. There’s one more responsibility in ESR – end of year reporting.

The Treasury Department instituted end-of-year reporting requirements for applicable large employers – these requirements begin in January 2016 for the 2015 tax year.

There are two IRS forms that you need to complete:• Form 1094-C - this form is for you to fill out for your business.• Form 1095-C – this form is for you to complete on behalf of your employees.

Paychex is uniquely situated to help you meet these reporting requirements – our ability to coordinate employee data across multiple categories allows us to facilitate the reporting of data you need to complete these forms efficiently and accurately. With Paychex’s help, your burden in completing these forms is reduced to answer a couple easy questions.

DO NOT FILEOctober 15, 2014

DRAFT AS OF 120115CORRECTED

Form1094-CDepartment of the Treasury Internal Revenue Service

Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns

▶ Information about Form 1094-C and its separate instructions is at www.irs.gov/f1094c.

OMB No. 1545-2251

2014Part I Applicable Large Employer Member (ALE Member)1 Name of ALE Member (Employer) 2 Employer identification number (EIN)

3 Street address (including room or suite no.)

4 City or town 5 State or province 6 Country and ZIP or foreign postal code

7 Name of person to contact 8 Contact telephone number

9 Name of Designated Government Entity (only if applicable) 10 Employer identification number (EIN)

11 Street address (including room or suite no.)

12 City or town 13 State or province 14 Country and ZIP or foreign postal code

15 Name of person to contact 16 Contact telephone number

For Official Use Only

17 Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

18 Total number of Forms 1095-C submitted with this transmittal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ▶

Part II ALE Member Information

19 Is this the authoritative transmittal for this ALE Member? If “Yes,” check the box and continue. If “No,” see instructions . . . . . . . . . . . . . . . .

20 Total number of Forms 1095-C filed by and/or on behalf of ALE Member . . . . . . . . . . . . . . . . . . . . . . . . . . ▶

21 Is ALE Member a member of an Aggregated ALE Group? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No

If “No,” do not complete Part IV.

22 Certifications of Eligibility (select all that apply):

A. Qualifying Offer Method B. Qualifying Offer Method Transition Relief C. Section 4980H Transition Relief D. 98% Offer Method

Under penalties of perjury, I declare that I have examined this return and accompanying documents, and to the best of my knowledge and belief, they are true, correct, and complete.

▲

Signature

▲

Title

▲

Date

For Privacy Act and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 61571A Form 1094-C (2014)

1094-C

DO NOT FILEOctober 15, 2014

DRAFT AS OF600115VOID

CORRECTEDForm 1095-CDepartment of the Treasury Internal Revenue Service

Employer-Provided Health Insurance Offer and Coverage ▶ Information about Form 1095-C and its separate instructions is at www.irs.gov/f1095c.

OMB No. 1545-2251

2014Part I Employee

1 Name of employee 2 Social security number (SSN)

3 Street address (including apartment no.)

4 City or town 5 State or province 6 Country and ZIP or foreign postal code

Applicable Large Employer Member (Employer) 7 Name of employer 8 Employer identification number (EIN)

9 Street address (including room or suite no.) 10 Contact telephone number

11 City or town 12 State or province 13 Country and ZIP or foreign postal code

Part II Employee Offer and CoverageAll 12 Months Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

14 Offer of Coverage (enter required code)

15 Employee Share of Lowest Cost Monthly Premium, for Self-Only Minimum Value Coverage $ $ $ $ $ $ $ $ $ $ $ $ $

16 Applicable Section 4980H Safe Harbor (enter code, if applicable)

Part III Covered Individuals If Employer provided self-insured coverage, check the box and enter the information for each covered individual.

(a) Name of covered individual(s) (b) SSN(c) DOB (If SSN is

not available)(d) Covered

all 12 months(e) Months of Coverage

Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec

17

18

19

20

21

22

For Privacy Act and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 60705M Form 1095-C (2014)

1095-C

To learn how Paychex can help your business navigate the ESR provisions, call 877-388-3530 or visit www.paychex.com/health-reform/esr/

For more information on health care reform, visit www.paychex.com/health-reform/

Paychex offers a wide range of solutions to help your business take action on complex health regulations,

including Employer Shared Responsibility.

Copyright 2015 Paychex, Inc. All rights reserved. All information believed accurate at time of release.