IRS Notice 1094C-032-01 alerts employers that there may be errors in the employee share of premiums reported on their Form 1094-C filings. This notice suggests discrepancies that could affect the affordability calculations under the Affordable Care Act (ACA).
What Does This Notice Mean?
This notice specifically addresses issues where the employee’s share of the premium as reported does not match IRS records or expectations based on typical premium rates. This can occur due to clerical errors, misinterpretation of filing requirements, or misunderstanding of the ACA’s affordability provisions.
Corrective Actions for Notice 1094C-032-01
- Review the reported figures for the employee share of premiums to verify their accuracy.
- Gather documentation that supports the reported premium amounts, such as payroll records and employee contribution rates.
- Submit a detailed explanation and any corrective data through the IRS e-services portal.
How to Avoid Similar Notices in the Future
To prevent the recurrence of similar issues:
- Ensure that all ACA-related filings are double-checked for accuracy before submission.
- Implement internal audits and controls to regularly review and verify the affordability and correctness of reported premium shares.
- Consider using ACA compliance tools to automate and streamline reporting processes.
Need More Help?
If you require further guidance on handling IRS notices or maintaining ACA compliance, consider visiting the ACA Track FAQ page or consulting with a professional ACA compliance advisor.
