IRS Code 1094C-026 addresses errors in the reporting of the full-time employee count on Form 1094-C. Accurately reporting full-time employees is essential for compliance with the employer mandate under the Affordable Care Act (ACA).
Importance of Accurate Full-Time Employee Reporting
Correctly reporting the number of full-time employees affects:
- The determination of whether an employer is an Applicable Large Employer (ALE) subject to the ACA’s employer mandate.
- The calculation of potential penalties for failing to offer adequate health coverage to eligible employees.
- The overall accuracy of the ACA reporting to the IRS.
Common Causes for Reporting Errors
Mistakes in reporting full-time employee counts often stem from:
- Errors in classifying employees as full-time or part-time based on hours worked.
- Discrepancies in data pulled from different human resources and payroll systems.
- Lack of communication between departments handling employee data and ACA reporting.
Steps to Resolve Incorrect Full-Time Employee Counts
To correct inaccuracies identified by Code 1094C-026, employers should:
- Review their employment records to confirm the accurate count of full-time employees.
- Amend the Form 1094-C with the corrected full-time employee count.
- Resubmit the updated form to the IRS to ensure compliance and avoid penalties.
Resources and Tools for Compliance
To aid in accurate reporting, employers can utilize compliance tools such as ACA-Track. For more detailed guidance:
- Visit the Official IRS website for information on ACA reporting requirements.
- Refer to the Common 1094-C error codes page to understand and rectify reporting errors.
