IRS Notice 1094C-033-01 is issued to employers when there appears to be an inaccurate count of full-time employees on their Form 1094-C. This notice can lead to compliance issues under the Affordable Care Act (ACA), potentially resulting in penalties if not addressed promptly.
Impact of Misreporting Full-Time Employees
Incorrectly reporting the number of full-time employees can affect the determination of an employer’s liability under the employer mandate of the ACA. This mandate requires employers with 50 or more full-time employees to offer health insurance that meets ACA standards.
Steps to Respond to Notice 1094C-033-01
- Review your employee records and the reported numbers on your Form 1094-C to confirm the accuracy of the full-time employee count.
- Compile supporting documentation such as payroll records, hours worked, and employment status changes that verify the correct count of full-time employees.
- Submit a response to the IRS with an explanation and any adjustments or corrections to your previous reports.
Preventing Future Notices
To avoid similar notices in the future:
- Implement rigorous record-keeping and reporting systems to accurately track and classify employees based on ACA guidelines.
- Regularly audit your ACA compliance processes to ensure accurate and timely reporting of full-time employee counts.
- Utilize ACA compliance software to assist in maintaining accurate records and automating report submissions.
Additional Resources
For further assistance with ACA compliance and understanding IRS notices, visit ACA Track’s FAQ page or consult with an ACA compliance expert.
