Filing corrections for your ACA (Affordable Care Act) filings might seem daunting, but it’s a manageable process if you follow the right steps. Here’s a guide that’s easy to understand, to help businesses file ACA corrections in 2024.
Why You Might Need to File ACA Corrections and How to File them.
Mistakes can happen when submitting ACA information returns to the IRS. Common errors include incorrect employee information, wrong coverage dates, or incorrect amounts. Correcting these errors ensures compliance and helps avoid penalties.
Step 1: Identify the Errors:
Carefully review the forms you originally submitted to identify any mistakes. The key forms involved are:
- Form 1094-C: Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns.
- Form 1095-C: Employer-Provided Health Insurance Offer and Coverage.
Step 2: Gather Correct Information.
Before making corrections, ensure you have the correct information. This includes accurate employee details, correct coverage dates, and the correct amount of coverage offered.
Step 3: Correcting Form 1095-C.
- Paper Filers:
- If you filed by paper, use a new Form 1095-C to correct each incorrect form. Check the “CORRECTED” box at the top of the form.
- Complete the form with the correct information.
- Submit the corrected form to the IRS and provide a copy to the affected employee.
- Electronic Filers:
- If you filed electronically, make corrections using the same electronic system. Follow the instructions provided by the IRS e-file system for submitting corrections.
- Notify the affected employee of the correction.
Step 4: Correcting Form 1094-C.
If you need to correct the information on Form 1094-C, such as the total number of 1095-Cs filed or other summary information:
- Use a new Form 1094-C.
- Check the “CORRECTED” box at the top of the form.
- Complete the form with the correct information and submit it to the IRS.
Step 5: Submit Corrections Timely.
It’s important to submit corrections as soon as you discover errors. Timely corrections help minimize potential penalties and ensure your records are accurate.
Additional Tips.
- Keep Records: Maintain copies of both the original and corrected forms for your records.
- Consult IRS Guidelines: For detailed instructions, refer to the IRS publications and resources on ACA filing and corrections.
Sources.
- IRS: ACA Information Center for Applicable Large Employers (ALEs)
- IRS: Correcting Information Returns
- IRS: Form 1094-C and 1095-C Instructions
Filing ACA corrections is an essential task to ensure compliance and avoid penalties. By identifying errors, gathering correct information, and following the IRS guidelines, you can correct your ACA filings effectively. Always refer to the official IRS resources for the most accurate and up-to-date information.
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