IRS Code 1094C-054-01 indicates that an employer has reported incorrect information regarding the health coverage offered to employees. This can affect the employer’s compliance status with the Affordable Care Act (ACA).
Understanding the Impact of Incorrect Coverage Information
Providing accurate details about the health coverage offered is crucial for ACA compliance. Incorrect information can lead to incorrect determinations of compliance, possibly resulting in penalties.
Steps to Correct Incorrect Coverage Information
- Review the coverage information you provided on Form 1094-C to identify inaccuracies.
- Gather correct data about the health coverage offered, including plan start dates, coverage types, and employee contributions.
- Amend the Form 1094-C with the accurate information and resubmit it to the IRS.
Preventing Future Errors
To minimize the risk of reporting incorrect coverage information in the future:
- Regularly update your records to reflect changes in health coverage plans.
- Conduct regular training sessions for your HR team on ACA reporting requirements and updates.
- Implement ACA compliance software that helps verify and validate coverage information before submission.
Additional Resources
If you require further assistance with correcting coverage information or understanding ACA compliance, explore ACA Track’s FAQ page or consult with an ACA compliance expert.
