If your HRIS or accounting system is preparing an XML for ACA reporting forms 1095 and 1094, you may be a candidate to e-file directly with the IRS.
E-file solutions are available in the market; however, finding one that does the work rather than making work for you is the key.
An important question to consider is: Has your HRIS created an IRS-ready XML?
IRS-Ready XML
How can you be sure your XML is IRS ready? Unlike the simplicity and understanding you’ve come to love in an Excel spreadsheet file, the XML format was designed to carry data based upon a specific set of rules. When you look at a XML file, there are actually multiple data components within one file. Although the XML is human readable, some of the most common issues are extra spaces between data components, which can result in file errors or rejections.
The PSST ACA-Track process for E-Filings with XML allows us to read your XML file before its goes to the IRS. Our service provides you with the ability to view the data contained in the XML by converting it to “English” in a PDF format by employee — a more familiar approach.
File it Right the First Time
ACA-Track’s XML E-file solution includes reviewing your data before submitting to the IRS. This pre-submission review provides an opportunity to find and correct errors. Employers e-filing on their own may find correcting an XML that has been rejected more cumbersome than anticipated. It’s not always easy to determine what errors are contained within the XML.
Our solution allows you to review and modified specific ACA codes for your employees prior to submitting to the IRS by converting it to a “user friendly” online format, eliminating the need to modify the XML. Common errors that occur include:
- The XML indicates an employee as not having been made an offer of coverage, but they show as having coverage.
- The XML indicates a spouse with coverage when they had cancelled during the year. This could be the result of the HRIS software system having generated the XML file prior to the information being entered.
Error Notifications & Easy Corrections
With ACA-Track’s XML E-file solution, if an error is detected after submitting to the IRS, error notifications are sent directly to employers. This is particularly useful as it quickly identifies in “English” each error. Errors that often occur include:
- Lowest cost share was not included and is required
- Invalid social security numbers
ACA-Track’s XML E-file error notifications and code explanations make corrections and resubmissions easy.
No TCC Code?
If you do not have a current TCC by now, unfortunately it may be too late in the reporting process to request one and complete the testing process. ACA-Track has its own TCC, which is used to submit your XML to the IRS.
Extended 1095s Deadline
In IRS Notice 2016-70 issued November 18, 2016, self-insured employers, applicable large employers (ALEs), and insurers are now to provide 2016 ACA information returns to individuals by March 2, 2017, instead of the previous deadline of January 31, 2017. Forms 1094-B, 1095-B, 1094-C, or 1095-C, remain due to IRS for those filing electronically on March 31, 2017.
If you have an IRS-ready XML, click here to check out our pricing. We request you notify us by January 25, 2017 of your request for this service to save time and money.
