IRS Notice AIRBR845 is issued to employers who have reported incorrect employee counts on Form 1094-C. Accurate employee counts are essential for the IRS to determine an employer’s adherence to the employer shared responsibility provisions under the Affordable Care Act (ACA).
Importance of Accurate Employee Reporting
Accurate reporting of employee counts on Form 1094-C helps ensure:
- Proper assessment of whether an employer meets the threshold for ACA coverage requirements.
- Correct calculation of potential employer mandate penalties.
Consequences of Misreporting Employee Counts
Errors in employee count reporting can lead to significant issues, including:
- Incorrect determination of ACA compliance status.
- Potential imposition of incorrect penalties for non-compliance.
Responding to AIRBR845
If you receive Notice AIRBR845, take the following steps:
- Review the reported numbers against your internal records to identify discrepancies.
- Amend the Form 1094-C with the corrected employee counts and resubmit it to the IRS.
- Implement measures to ensure accuracy in future reports.
Preventing Misreporting in Future Filings
To prevent misreporting employee counts in future filings:
- Conduct regular audits of your employee records to verify accuracy before submission.
- Use ACA-Track to maintain accurate records and automate reporting, reducing the likelihood of errors.
- Train HR and payroll staff thoroughly on the importance of accurate ACA reporting.
For more information on managing your ACA compliance and avoiding common pitfalls, please visit ACA-Track Service Descriptions.
