IRS Code 1094C-040-01 is issued when there is an absence of data regarding the employee share of the lowest cost monthly premium, which is essential for determining ACA compliance regarding affordability.
Importance of Reporting the Employee Share
The employee share of the lowest cost monthly premium is crucial information that helps the IRS determine whether the health coverage offered by an employer is affordable under ACA standards. Employers are required to report this cost to ensure compliance and avoid potential penalties.
Correcting Missing Information
- Review your previous Form 1094-C submissions to identify why the employee share was not reported.
- Gather the necessary data related to the lowest cost monthly premium available to employees during the applicable period.
- Amend your Form 1094-C to include the missing information and resubmit it to the IRS.
Preventative Measures for Future Compliance
To ensure compliance in future filings and avoid similar issues:
- Maintain thorough records of all health plan offerings and employee costs.
- Regularly audit your ACA reporting processes to ensure all required data is accurately captured and reported.
- Utilize ACA compliance tools that help automate the calculation and reporting of employee costs.
Where to Find Help
If you require additional assistance with correcting your ACA filings or understanding reporting requirements, consider exploring ACA Track’s FAQ page or consulting with a professional knowledgeable in ACA compliance.
