IRS Code 1094C-013-01 pertains to errors in the Aggregated Group Indicator on Form 1094-C. This indicator is crucial for employers who are part of an aggregated group, as it affects how the IRS evaluates compliance with the Affordable Care Act (ACA).
Importance of Accurate Aggregated Group Reporting
The Aggregated Group Indicator must accurately reflect the employer’s status within a controlled group to ensure:
- Correct assessment of shared responsibilities among the group members.
- Proper calculation of employer shared responsibility payments.
- Avoidance of penalties for misreporting ACA compliance status.
Common Issues with Aggregated Group Indicator
Errors in this area often arise from:
- Misunderstanding the criteria for being part of an aggregated group.
- Administrative oversights in marking the correct status on the form.
- Changes in group structure not being updated in IRS submissions.
Steps to Correct the Aggregated Group Indicator
To address issues identified under Code 1094C-013-01, employers should:
- Review their status within any aggregated groups to confirm accuracy.
- Amend the Form 1094-C to reflect the correct aggregated group status.
- Resubmit the updated form to the IRS, ensuring all related documentation is correct.
Resources for Compliance
To aid in compliance and correct reporting, employers can utilize tools such as ACA-Track. For additional assistance:
- The Official IRS website provides guidelines and resources on reporting for aggregated groups.
- Visit the Common 1094-C error codes page for insights into common issues and corrective actions.
