IRS Code 1094C-044-01 addresses the issue of inaccurately reported Social Security Numbers (SSNs) on Form 1094-C. This can lead to significant complications in processing ACA compliance documents and may result in penalties for the reporting employer.
Understanding the Impact of Incorrect SSN Reporting
Inaccurate SSN reporting disrupts the IRS’s ability to accurately match individuals with their health coverage information, essential for enforcing compliance with the Affordable Care Act (ACA).
Steps to Correct Inaccurate SSNs
- Verify the accuracy of all SSNs reported on Form 1094-C against employee records.
- Correct any discrepancies found and prepare an amended Form 1094-C with the accurate SSNs.
- Resubmit the amended form to the IRS promptly to mitigate any potential compliance issues.
Best Practices for SSN Verification
To prevent inaccuracies in future filings:
- Implement a robust verification process for collecting and updating employee SSNs during the onboarding and annual review processes.
- Use SSA verification tools to ensure the accuracy of SSN information before submission to the IRS.
- Adopt ACA compliance software that includes features for SSN validation and error checking.
Need More Help?
If further assistance is required for managing SSN reporting or understanding your ACA obligations, explore ACA Track’s FAQ page or seek expertise from a professional specializing in ACA compliance.
