Employers who fail to comply with the health coverage requirements under the Affordable Care Act (ACA) may receive Notice 1094C-030-01, indicating a proposed penalty related to Employer Shared Responsibility Payment (ESRP). This notice is critical for employers as it outlines potential fines due to insufficient health coverage offered to employees.
What Triggers Notice 1094C-030-01?
This IRS notice is issued to employers who the IRS believes did not offer minimum essential coverage to at least 95% of their full-time employees and their dependents. Employers identified in this category may face significant penalties if they cannot demonstrate compliance or provide valid reasons for any discrepancies in their reporting.
Responding to Notice 1094C-030-01
- Review the notice for detailed information about the proposed penalty and the specific month(s) in question.
- Check your records to confirm whether you met the coverage requirements during the months indicated.
- Prepare to submit any necessary documentation, such as proof of offered health coverage, to the IRS as part of your response.
How to Avoid Future Notices
To prevent future issues with ACA compliance and the resulting notices, employers are encouraged to:
- Maintain accurate and comprehensive records of health coverage offered.
- Ensure timely and accurate submission of all required forms, including the IRS Form 1094-C and 1095-C.
- Use ACA compliance tools and software to help manage and review coverage offerings and employee eligibility.
Additional Resources
For more detailed guidance on responding to IRS notices and managing ACA compliance, employers can visit ACA Track’s FAQ page or consult directly with ACA compliance experts.
