This can be a very intimidating process…especially where ACA compliance is concerned. No one wants to receive that dreaded penalty letter in the mail and no business owner wants to be slapped with crippling fees. With the following tips you can avoid common errors in ACA filing and stay calm, cool, and IRS compliant!
You Didn’t Realize That You Needed To File…
This mistake may seem like the most basic error in common sense, however it is actually quite common. Many employers may be sure that they don’t meet the IRS requirement, yet they actually do. The ACA rule states that if you are an employer with fifty or more employees then your business is considered an applicable large employer. These entities must file with the IRS.
This may seem like a very straight forward tidbit of information, however, if you have multiple part-time employees it can get dicey. For example, four part-time employees working ten hours per week equals one full-time employee. If your business employs forty-eight full-time workers and ten part-time employees, you are most likely considered an applicable large employee by the IRS. The beauty of utilizing ACAwise is that we handle this information for you! It is designed to lead you through the process from beginning to end.
There Were Coding Errors On Your 1095-C…
The 1095-C…four pages of itemized lines that require specific codes based on the health insurance offers that your business made to its employees. You may feel like you’re drowning in a sea of single digits and number combinations. You’re not alone, many errors can occur at this stage of the process. While a 1A and 1E sound pretty similar they indicate different types of health insurance offers on line 14 of the 1095-C. This seemingly small error can add up to a big penalty.
ACAwise was created to correct these types of errors throughout the preparation and filing process. Our software will generate your 1094 and 1095 forms for you and alert you with any errors. ACAwise can even generate these codes for you using the data that you provide. If you need personalized assistance at any point, our support team is here to guide you through it!
You Filed…Using The Wrong Method…
So you had the best intentions…but you filed using the wrong method. You may have filed flawless tax forms but if you filed them incorrectly then you will be hearing from the IRS. The IRS requires that employers with at least two hundred and fifty employees must file electronically. Employers with less than two hundred and fifty employees may file by mail. However, filing electronically is recommended no matter what the size of your business is.
Feeling overwhelmed? ACAwise can tackle the filing process for you! Filing electronically happens in a flash with ACAwise! We transmit your 1094 and 1095 to the IRS for you. If there are any rejected forms, we will correct and retransmit them! Never stress about missing a deadline with ACAwise, we make ACA compliance easy and effortless for employers!