Most Common ACA 1094/1095 Errors - Employer Reporting Tip

Most Common ACA 1094/1095 Errors - Employer Reporting Tip

February 1, 2024

Question

What are the most common employer reporting errors?

Answer

As experts assist with Letter 226J appeals and help employers review their ACA employer reporting, there are certain errors that are seen too often. It is very important that employers should be checking the information before finalizing their reporting.

• The first common error is the failure to mark “Yes” for the minimum essential coverage offer indicator in Part III, column (a) of the 1094-C to let the IRS know that coverage was offered to at least 95% (or all but 5, if greater) of full-time employees each month as required under §4980H(a).
• The second common error is the failure to use a safe harbor code (a “2” code) on Line 16 of Form 1095-Cs, specifically the affordability safe harbor codes, which then suggests to the IRS that a penalty may be owed under §4980H(b).

See more detail in our Employer Reporting FAQ (Q10).

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