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

Rhode Island State ACA Filing Required for Tax Year 2020

Rhode Island 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!

We have also compiled a list of the most commonly asked Q&A’s you need to know to be ready for January:

Continue reading Rhode Island State ACA Filing Required for Tax Year 2020