California State ACA Filing Required for Tax Year 2020

California has announced that state filing is now required for ACA forms for Tax Year 2020. We know that new requirements can be tricky, so let BoomTax help you with your state and federal filing!

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We have also compiled a list of the the CA state requirements so you can be ready for January:

Continue reading California State ACA Filing Required for Tax Year 2020

Introducing Our Free ACA E-filing Service for Small Businesses

As part of our continued commitment to small businesses, we are proud to announce the launch of our FREE ACA e-filing service for select employers.

Beginning today, employers with up to 75 full-time (or full-time equivalent) employees can use BoomTax to file their IRS tax forms 1094-C and 1095-C electronically with the IRS for the 2016 tax year for FREE.

Continue reading Introducing Our Free ACA E-filing Service for Small Businesses

Affordability Safe Harbors

Determining the affordability of the health coverage offered to your full-time employees and their dependents can be a bit complex. To put it simply, provided coverage is considered affordable if the premium constitutes less than 9.5% (adjusted annually) of the household income of an eligible employee for the plan year.

Since household income can be difficult to determine, due to factors such as spousal or secondary income, the IRS offers three safe harbor options to assist in determining affordability: Continue reading Affordability Safe Harbors

EIN Validation Errors and Next Steps

One of the most common types of ACA e-filing errors returned from the IRS AIR system are TIN validation errors, including EIN errors. The most common EIN errors are listed below:

  • 1094C-004-01 – Form 1094C ‘BusinessName’ and ‘EmployerEIN’ in ‘EmployerInformationGrp’ must match the IRS database. Form 1094C ‘BusinessName’ and ‘EIN’ within ‘OtherALEMembersGrp’ must match the IRS database.
  • 1094C-079-01 – Form 1094C ‘BusinessName’ and ‘EIN’ within ‘OtherALEMembersGrp’ must match the IRS database.
  • 1095B-052-01 – Form 1095B ‘BusinessName’ and ‘EIN’ within ‘IssuerInfoGrp’ must match the IRS database.

What causes an EIN Validation Error?

This will happen when the name and TIN submitted in your filing doesn’t match what the IRS has on file, and this can happen for the following reasons:

  • An employer EIN mismatch on the 1094-C in Part I and also in Part IV of the 1094-C for Aggregate ALEs. (Note: This can also cause TIN validation errors in the associated 1094-Cs for remaining ALE members.)
  • A Issuer Name and EIN mismatch on the 1095-B in Part III, in the Issuer Information section.

Continue reading EIN Validation Errors and Next Steps

Common Errors for Form 1099-NEC – TY2020

Preparing Forms 1099-NEC can be difficult,  but we are here to help simplify things!

So, you:

Sounds like you are good and ready to complete and file your 1099-NEC forms.

However, before you press that print or e-file button, take a moment to review your information and forms for accuracy in order to avoid potential penalties or other problems. Continue reading Common Errors for Form 1099-NEC – TY2020