IRS Code 1094C-042-01 is issued when there are discrepancies in the number of employees reported by an employer on Form 1094-C. This error can have significant implications for compliance with the Affordable Care Act (ACA).
Significance of Accurate Employee Count
Accurate reporting of employee numbers is essential for determining an employer’s obligations under the ACA. Incorrect counts can lead to improper assessments of coverage requirements and potential penalties.
Steps to Address Incorrect Employee Count
- Review the employee count reported on your Form 1094-C to identify discrepancies.
- Ensure that all employees, including full-time and full-time equivalent employees, are accounted for correctly.
- Amend the Form 1094-C with the accurate employee count and submit the corrected form to the IRS.
Tips for Maintaining Accurate Records
To avoid future issues with employee count reporting:
- Maintain up-to-date records of all hires, terminations, and changes in employment status.
- Implement regular audits of your ACA compliance processes to ensure accuracy in all reported data.
- Utilize ACA compliance software for automated record-keeping and reporting.
Where to Get Help
For additional guidance on correcting reporting errors or understanding your ACA reporting obligations, visit ACA Track’s FAQ page or seek advice from an ACA compliance specialist.
