The ACA filing deadline for the 2024 tax year is rapidly approaching, and employers have less than a week to ensure their filings are complete, accurate, and submitted on time.
The deadline for electronically filing ACA Forms 1094-C and 1095-C with the IRS is March 31. Missing this deadline or submitting incorrect information can result in costly penalties and increased scrutiny from the IRS.
With time running out, now is the moment for employers to finalize their ACA compliance efforts. Are you confident that your filings are accurate and penalty-proof?
Why the March 31 ACA Filing Deadline Matters
Under the ACA’s Employer Mandate, organizations with 50 or more full-time or full-time equivalent employees (Applicable Large Employers, or ALEs) are required to:
- Offer affordable, minimum essential coverage to at least 95% of full-time employees and their dependents
- Accurately report coverage details to the IRS via Forms 1094-C and 1095-C
Failing to meet the March 31 deadline can result in significant IRS penalties under IRC Sections 6721 and 6722, including:
- Up to $310 per return for failure to file on time
- Up to $310 per return for failure to furnish accurate statements to employees
- Employer Shared Responsibility Payment (ESRP) penalties for failing to offer required coverage
With the IRS increasing ACA enforcement efforts, late or inaccurate filings put organizations at risk of receiving Letter 226J penalty notices, which can amount to millions in penalties.
March 31 is also the state filing deadline in California, New Jersey, Massachusetts and Rhode Island. The deadline in Washington D.C. is April 30, and the extended filing deadline in California is May 31.
Common Last-Minute ACA Filing Mistakes That Lead to IRS Rejections
As the deadline nears, employers must be vigilant in avoiding common filing errors that could lead to rejected submissions or compliance failures:
- Missing the Plan Start Month: The IRS requires this field to be completed for accurate processing.
- Invalid Special Characters in Employee or Dependent Names: The IRS only accepts letters (A-Z, a-z), hyphens, and single spaces. Periods, accent marks, or extra spaces will cause rejections.
- Exceeding Character Limits:
- Employee names cannot exceed 20 characters
- Address fields have strict limits (35 characters for Address 1 & 2, 22 characters for City, 2 characters for State, 5 characters for ZIP)
- Incorrect ZIP Codes: East Coast ZIP codes often drop the leading zero, resulting in IRS rejections.
- Contradictory Codes on Line 14 and Line 16: Certain code combinations, like 1H/2C (No offer of coverage but employee enrolled in health coverage), trigger IRS red flags.
- Missing or Inaccurate Contribution Amounts on Line 15: If certain offer codes (e.g., 1B, 1C, 1E) are used on Line 14, Line 15 must include a contribution amount.
Even a single mistake in these areas can delay filings or result in IRS penalties.
What to Do If You’re Not Ready for the ACA Filing Deadline
With less than a week to go, employers who have not yet completed their ACA filings need to act fast. Here’s what you can do now:
1. Conduct a Final Review of ACA Data
Check for errors in employee details, coverage information, and IRS codes before submission. Trusaic’s ACA Compliance solution includes real-time data validation to catch these mistakes before they become costly.
2. Ensure Forms Are Submitted Electronically
Employers filing 250 or more forms must submit electronically. Paper filings are no longer accepted. Ensure your systems are IRS AIR (Affordable Care Act Information Returns) compliant.
3. Monitor for IRS Submission Errors
The IRS may reject filings due to data inconsistencies. Employers should check for acceptance confirmations and quickly correct any rejections. Trusaic’s automated ACA solution monitors IRS feedback, ensuring rejected filings are corrected and resubmitted on time.
4. Prepare for Potential IRS Inquiries
Even after submission, the IRS may issue Letter 5699 requesting missing filings or Letter 226J assessing penalties. Having audit-ready records is essential to defending compliance.
Avoid the Last-Minute Rush—Partner with Trusaic for Hassle-Free ACA Compliance
The March 31 deadline is just days away, but it’s not too late to ensure your ACA filings are accurate and penalty-free. Trusaic’s end-to-end ACA compliance solution simplifies filing, eliminates errors, and ensures full compliance with IRS regulations.
With Trusaic, you get:
- Automated error detection to catch missing or incorrect data before submission
- Seamless IRS e-filing with real-time monitoring for rejections
- Full audit support, ensuring you’re prepared for potential IRS inquiries
- Expert compliance guidance, helping you avoid costly penalties
Don’t risk missing the ACA deadline this year or in the future. Let Trusaic handle your filings and ensure full compliance before it’s too late.