making corrections to 1095 -c & 1094-c - integrity data€¦ · making corrections to 1095 -c...

© Integrity Data 2016. All rights reserved

Making Corrections to 1095-C & 1094-C

May 23, 2017

Agenda

• Making Corrections• How long do we have to keep 1095-C data and the documentation behind it?• Q&A• Resources

2© Integrity Data 2016. All rights reserved.

Corrections

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Timeframe for status updates

• Every electronic transmission will have a unique Receipt ID assigned by the IRS.• The IRS will periodically update status of the Receipt ID.• It may take up to 7 business days for the IRS to update the status of your

transmission.• Integrity Data’s ACA Compliance Solution will monitor IRS status updates and

will display that on your screen.• It is the filer’s – YOUR– responsibility to monitor the IRS status and take action

if a rejection or error is discovered.• Each transmission – original or corrected– will have its own status trail.• When corrections or replacements are made, our software will know which

original Receipt ID to reference.

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IRS statuses for electronic submission errors• Processing - IRS has not completed processing the transmission. • Accepted - IRS has completed processing the transmission and found

no errors. • Partially Accepted – IRS has accepted it but at least one submission

was rejected.• Accepted with Errors - IRS has completed processing the transmission

and the errors are documented in the Error Data File attached to the Acknowledgment.

• Rejected - IRS has rejected the transmission. Depending on why the transmission was rejected, an Error Data File may or may not be attached to the Acknowledgment.

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Replacement vs. Corrected submissions

• Replacements are filed when the Transmissions or Submissions are Rejected. Replacement Transmission must contain all of the records you want the IRS to process that were included in the Rejected Transmission that it is replacing.

• Corrections are filed after the Transmissions are Accepted by IRS. This includes the status of Accepted and Accepted with Errors. Corrections include errors identified either by the IRS, the employer, or by the employee.

• Our electronic submission process will know which applies for a particular scenario and will automatically code it either as a replacement or correction.

• For IRS Form 1095-Cs submitted via paper to the IRS, there is only a Corrected box that needs to be checked when submitting either a replacement or correction.

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Accepted with Errors

• A correction may not always be required merely because you received an Accepted with Errors.

• You will have to go back and do some research as to whether or not there was an error in the data that was originally transmitted.

• If no errors were found, no other action is needed.

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Rejected

• If an electronic file is rejected, the filer will have up to 60 days from the date the file was transmitted to submit an acceptable replacement.

• It is the filer’s responsibility to check the status of each transmission.• If an acceptable replacement file is not received by the IRS within 60

days, the filer could be subject to late filing penalties.

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Events that prompt the need for a correction• Company discovers error or omission – i.e., employee was covered for a

month but was reported as not having coverage for that month• Employee discovers error or omission – i.e., employee discovers a

dependent’s SSN in Part III is not correct• IRS provides written notice – if company files in paper form the IRS will

send a letter outlining errors needed to be corrected.• IRS electronic notification– if the status verification on a submission is

‘Accepted with Errors’ or ‘Rejected’

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Common errors on IRS Form 1095-C• Employee’s SSN is invalid• Employee's name is incorrect • Employee's mailing address is incorrect • Improper state abbreviations (i.e., TEX instead of TX)• Part III: A covered individual’s SSN is missing or invalid • Part III: A covered individual's name or SSN or DOB is present, but no

coverage details are given (Either All 12 months is not checked or no month is checked.)

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Common errors on IRS Form 1095-C• Apostrophe ‘ exists• Quote Marks “ exist• Comma in Address line , and/or # (SPACE) exists

• Ex: 123 Any Street, # 107– Correct 123 Any Street #107

• Hyphen – between city names Ex: Sedro-Woolley• Forward Slash in text fields Ex: ABC Heating & A/C

• Example of an error:

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IRS Filing

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• Select and submit• User interface

consistent • Every submission is

tracked• Extensive drill-back

capabilities


IRS Filing Activity

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• Every submission has a status that changes

• Every record within a submission has a status that changes

• You can view all of it here

• You can edit errors and resubmit from here


IRS Filing Activity "Detail"

• Making edits and preparing to re-file corrections for multiple employee 1095-Cs without leaving the filing area.

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Errors from eFiling

• Click Edit for the company that contains the 1095-C errors• This will open the Filing Activity window. Click on the down arrow on the

light gray 1095-C Status header and choose the second, “sort descending”. This brings all the errors together as below.

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Errors from eFiling

• Click the Ignore button if all is correct for that employee or Click Edit on the Employee that needs to be corrected

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Errors from eFiling• This will open a new window IRS Filing Activity Detail window with three

views at the top and that is where you make corrections and update.• The first one 1. Opens the employee card for name or SSN changes. • The second, 2. Opens the 1095-C to make corrections on Part II or III.• The third, 3. Errors shows the IRS error they sent.

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Errors from eFiling• If you do make corrections, edits, on 1095-C’s use the following guidelines to

send them back to the IRS.• Go back to the IRS Filing page and on the red line for the company that has the

error click on the 1095-C’s blue button. This will pull up all the 1095-C’s. Go to the status column and hit the down arrow and get all the errored 1095-C’s together. Then one page at a time (Put at maximum number per page) unmark all on that page and Save. Then go to the next page and do the same. Do this until all the 1095-C’s are unchecked and Saved. You have to do it one page at a time to Save it.

• Then go to the page that has the erred ones and check only them and Save.• Go to the IRS filing window and select the company and Send to IRS. This will

send the ones that you fixed back to the IRS.18


Verify 1094-C Information

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Verify 1094-C Information

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Verify the 1095-C count and that all 1095-C’s are selected

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Verify the 1095-C count and that all 1095-C’s are selected

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How long do we have to keep 1095-C data and the documentation behind it?

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Keep ACA data for 3 years

• If sending paper forms to IRS:• Maintain copies of all 1094-Cs and 1095-Cs sent to the IRS – originals and corrections.• You will need to make copies for each paper transmittal. Our software will have the

most up-to-date information.

• If sending electronically to IRS:• Our software will keep a historical log of all submissions.• You can download a transmission package for each submission that will have copies

of the 1094-C, 1095-Cs, XML file and IRS acknowledgments.• A best practice would be to download this package and save in electronic form.

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Data Retention Package

• If you are filing electronically, our solution can create a zip file for each transmission. This is called a Data Retention Package.

• The zip file will include:• PDF version of the 1094-C• PDF versions of the 1095-Cs• A PDF version of the IRS communication and errors received.• A PDF version of the Transmission Report.• XML data for the manifest file (goes with the data file).• XML data for the data file (1095-C and 1094-C).• XML data for the response from IRS.

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Resources

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Upcoming User Group sessions

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• Keeping up with ACA reporting during 2017 - Tuesday June 20 at 1:30 CST • Recordkeeping throughout the year for required IRS reporting• Guidelines for classifying an employee as full-time• Determining eligibility for health coverage using standard or monthly measurement periods

• ACA Update: What is going on with ACA and what does it really mean for employers TODAY? • The current state of affairs as it relates to the ACA• What going on now in healthcare reform• What employers need to consider from a compliance perspective

Dates– Thursday, June 8 @ 1:30 PM CDT– Thursday, July 6 @ 1:30 PM CDT– Thursday, August 10 @ 1:30 PM CDT

SIGN UP ON OUR ACA UG PAGE – PASSWORD: ACAUG

http://www.integrity-data.com/aca-user-group-content-library/

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Find slide decks and recordings from past ACA User Group lessons on this page:http://www.integrity-data.com/aca-user-group-content-library

Password: ACAUG

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Affordable Care Act reporting FAQs on Integrity Data’s site:• Go to http://www.integrity-data.com/knowledge-base/• Then click on ‘ACA Reporting Requirements’ or ‘ACA Compliance Solution’

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A different type of ACA tracking

© Integrity Data 2016. All rights reserved.

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so that we can trackyour concern – and see that everyone

who must weigh in on the answer can do so.Integrity ACA – Microsoft Dynamics SL Edition

For support, please contact Plumbline Consulting via email at

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RECOMMENDED way to get Support questions answered promptly and fully:

Call for Testimonials and ReferralsWe’ll buy you coffee!

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Questions?

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Thank you for joining us

To add team members to our notification list

for ACA User Group calls:

Email Lindy Belley

[email protected]

For clarifications on details presented and to suggest topics for future ACA User Group calls:

Email Keith Schmidt

[email protected]

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Integrity Data’s publications and presentations are designed to make employers aware of IRS reporting requirements under the Affordable Care Act, best practices for compliance with those requirements, and the consequences of noncompliance.

This material is intended to provide accurate information as of the date posted. It is provided with the understanding that neither Integrity Data, nor the authors and presenters, are rendering legal or accounting advice.

With respect to your organization’s decision making for Affordable Care Act compliance, review the information presented with legal counsel specializing in employee benefits law.

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