IRS Code 1094C-048-01 deals with discrepancies reported concerning the Applicable Large Employer (ALE) Member status on Form 1094-C. Accurately reporting ALE status is crucial for compliance with the employer mandate under the Affordable Care Act (ACA).
Consequences of Incorrect ALE Status Reporting
Incorrect reporting of ALE status can lead to improper assessments of compliance, penalties, and obligations under the ACA. It’s important for employers to accurately determine and report their ALE status to avoid these issues.
How to Correct Inaccurate ALE Status
- Review your organization’s employee count and other criteria that determine ALE status.
- Update your Form 1094-C with the correct ALE Member status and any other necessary revisions.
- Resubmit the amended form to the IRS to ensure your records are accurate.
Best Practices for ALE Status Determination
To prevent errors in ALE status reporting in the future:
- Regularly review your employee count, especially if your business is near the threshold for ALE status.
- Keep informed of any changes in ACA regulations that might affect your ALE status.
- Use ACA compliance software that helps track and manage employee counts and ALE status.
Need More Help?
If you’re unsure about your ALE status or need help correcting your ACA reporting, consider visiting ACA Track’s FAQ page or consulting with an expert in ACA compliance.
