E-filing and making Corrections to 1095-C & 1094-C. March 21, 2017 Integrity Data All rights reserved

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1 E-filing and making Corrections to 1095-C & 1094-C March 21, 2017

2 Agenda E-filing Step-by-step guide Making Corrections How long do we have to keep 1095-C data and the documentation behind it? Q&A Resources 2.

3 E-filing 3

4 Do you have 250 or more 1095-Cs to send? An organization is required to send ACA information returns electronically if it has 250 or more 1095-C forms to submit. This requirement is by individual entity submitting, not total submissions in a commonly controlled or affiliated group. Companies with fewer than 250 submissions can mail paper copies of 1095-Cs, with their accompanying 1094-C, to the IRS. The IRS highly recommends all submissions be filed electronically even if the entity does not have 250 or more 1095-Cs to send. 4

5 Our solution DIRECTLY integrates with the IRS AIR (Affordable Care Act Information Returns) system. Every transmission will have a unique Receipt ID assigned. The Receipt ID generated by the IRS is the official record identifier. All subsequent corrections and replacements must reference the original Receipt ID. 5

6 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. 6

7 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. 7

8 Step-by-step guide 8

9 At this point, you are ready Year-End Close created IRS Forms 1094-C and 1095-C. You are clicks away from filing. Check to see if you need to do any editing for the 1094-C You may be part of a controlled group where another entity processed their own returns. You still need to reference them in Part IV. If you are the authoritative filer for your entity, another system may have filed returns for their specific group. You may have to edit the employee counts and submission totals in your filing to include those submissions. 9

10 efiling Steps Verify the 1095-C count and that all 1095-C s are selected Check the list of common errors to avoid. Fix any errors Verify the information on the 1094-C is correct efile 10

11 Verify the 1095-C count and that all 1095-C s are selected 11

12 Verify the 1095-C count and that all 1095-C s are selected 12

13 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.) 13

14 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: 14

15 Fixing Common errors on IRS Form 1095-C Run validation Use PDF Search Edit Employee, Company, Dependents, 1094-C, 1095-C 15

16 Verify 1094-C Information 16

17 Verify 1094-C Information 17

18 IRS Filing Select and submit User interface consistent Every submission is tracked Extensive drill-back capabilities 18

19 IRS Filing Activity 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 19

20 IRS Filing Activity "Detail" Making edits and preparing to re-file corrections for multiple employee 1095-Cs without leaving the filing area. 20

21 Corrections 21

22 Once you have chosen whether to submit by paper or electronically All subsequent corrections (or replacements) must be submitted in the same format as the original An IRS Form 1094-C transmittal cannot comingle original IRS Form 1095-C submissions and corrected IRS Form 1095-C submissions they need to be transmitted separately Our application allows you to select between Original and Corrected It is possible to submit a corrected IRS Form 1094-C without any corresponding IRS Form 1095-C for example: Total employee count was wrong for a month An affiliated group member was not listed on Part IV 22

23 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 23

24 When you have filed electronically, our system will monitor your changes If you edit a 1095-C that was already sent to the IRS, when you save the change, we automatically will ask if you want to mark the form as Corrected This is also true with the 1094-C. These prompts are automatic. 24

25 Electronic filing offers some protection for out-of-sync data If you try to electronically submit for a particular year, we will warn you if a previous electronic file was generated. If a previous submission is pending, we will not allow you to proceed. More information will be presented about IRS e-filing statuses later in this deck. 25

26 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. 26

27 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 27

28 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. 28

29 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. 29

30 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. 30

31 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. 31

32 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. 32

33 You MUST monitor the status of your submissions. Every submission will have deep audit trails for your review. We will identify all rejections and errors. 33

34 Enhanced focus on Social Security Numbers 34

35 Social Security Numbers are required The IRS will cross reference SSNs and last names with the last name associated with that SSN that the Social Security Administration has on file. 35

36 How long do we have to keep 1095-C data and the documentation behind it? 36

37 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. 37

38 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. 38

39 Questions? 39

40 Resources 40

41 Upcoming User Group sessions Weekly during ACA reporting season! Tuesday April 18 at 1:30 CST Making Corrections to Tax Year 2016 data SIGN UP ON OUR ACA UG PAGE PASSWORD: ACAUG 41

42 Find slide decks and recordings from past ACA User Group lessons on this page: Password: ACAUG 42

43 Affordable Care Act reporting FAQs on Integrity Data s site: Go to Then click on ACA Reporting Requirements or ACA Compliance Solution 43

44 . A different type of ACA tracking RECOMMENDED way to get Support questions answered promptly and fully: support@integrity-data.com Always this address so that we can track your 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 at pclproducts@plumblineconsultiong.com 44

45 How can you introduce us to your friends? We would appreciate your introduction to your friend through You can also share your friend s information using the form on Our commitment to you We will treat your referral with respect and professionalism. We will keep you informed regarding the outcome of our conversation. THANK YOU for your recommendation! Once your referral has bought our solution, we will send you a gift from a very special, local business of which we are a raving fan!

46 Thank you for joining us For clarifications on details presented and to suggest topics for future ACA User Group calls: Keith Schmidt To add team members to our notification list for ACA User Group calls: Lindy Belley

47 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. 47

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