IRS Code 1094C-060-02 is sent to Applicable Large Employer (ALE) Members who incorrectly report the Minimum Essential Coverage (MEC) indicator on Form 1094-C. This error can lead to misrepresentation of compliance with the Affordable Care Act (ACA) requirements.
The Importance of the MEC Indicator
The MEC indicator helps the IRS determine whether an employer has offered health coverage that meets the minimum standards of the ACA. Incorrect reporting of this indicator can result in incorrect assessments of penalty liabilities.
How to Correct the MEC Indicator
- Review the information submitted on your Form 1094-C to identify the incorrect MEC indicator.
- Consult ACA guidelines to verify the correct indicator for the coverage offered during the reporting period.
- Amend the Form 1094-C to reflect the correct MEC indicator and resubmit it to the IRS.
Preventing Future Indicator Errors
To avoid errors with the MEC indicator in future submissions:
- Stay updated on ACA requirements and changes that may affect the classification of your coverage as MEC.
- Regularly train your HR and compliance teams on ACA reporting standards and updates.
- Utilize ACA compliance software to ensure accuracy in your ACA reporting.
Getting Help
If you need further assistance with your MEC indicators or ACA compliance in general, consider visiting ACA Track’s FAQ page or consulting with a compliance expert.
