If you are an Applicable Large Employer (ALE) who has approved your 2021 ACA Reporting by the Jan. 20, 2022 deadline, transmission of your 2021 ACA filings is complete. Download and save your ACA filing data in a safe and secure way for record retention purposes. Since these are tax documents, please retain them as you would for any other tax document. This guide provides details on how to review and download your ACA filing data.
After transmission to the IRS, it is possible for your filing to come back with a status of “Accepted with Errors”. In most cases, these can be resolved by transmitting a correction to the IRS.
The IRS ended Good Faith Relief effective with tax year 2021. This means the IRS will now require all forms with errors to be resolved before April 1, 2022. If not resolved, or resolved late, you may be assessed penalties from the IRS.
The most common error found on Form 1095-C is 1095C-010-01 – an employee name and SSN mismatch.
To determine whether you have any IRS errors to resolve:
1. Log in to ADP TotalSource®
2. Go to Process > ACA > ACA Health Compliance and click on the Needs Attention box.
3. If you have an impacted employee(s) ask each impacted employee to carefully compare the information on their Form 1095-C to the information on his or her Social Security card. If the employee identifies a mismatch, click on individual form and review the error(s), edit the form, save and submit the corrected form. Note: The IRS can take up to seven days to confirm if a correction was accepted.
4. If an error is not found, your employee may need to contact the Social Security Office to resolve the issue. Employees may log on to www.ssa.gov or call 1-800-772-1213 to find the nearest office. Once resolved, please update our system with the corrected information and submit the corrected Form 1095-C following the steps above.
Be sure to also notify your payroll representative of any changes to an employee’s name or SSN to ensure the error is fixed moving forward.
ADP TotalSource has created a FAQ document and sample letter to assist you and your employees.
As always, we are happy to support you through this process. Don’t hesitate to reach out to your HR Business Partner if you have any questions. If employees have questions, they can call a MyLife Advisor at 1-844-448-0325 or send an email to MyLifeAdvisor@adp.com.