Check your forms

Did you make a mistake when filling out ACA forms? Using the wrong codes, miscounting full-time employees (FTEs) and not taking advantage of transition relief will quickly trigger an ESRP penalty.

• We worked with a non-profit facing an $80,000 penalty, going back through their filings, making the appropriate corrections and turning their balance into $0 owed!
• We worked with a small family owned business who mistakenly counted their seasonal employees as full time employees and received a $117,000 penalty from the IRS. After correcting the mistake we reduced their penalty to $0.

Check your records

See how many full-time employees you have vs. part-timers and contractors. Then, review this against the ACA rules for small businesses to see if you’ve filed incorrectly. A mistake here could drastically change the landscape of your ESRP.

• We worked with a multiple-entity client to take their whopping $550,000 penalty down to $6,000, simply by navigating the different filings of their 20 businesses and explaining the proper entity structure to the IRS.

Check the boxes

A common trigger for IRS Letter 226j occurs when employers forget to check off a box on their filings. Finding the missing checkbox and explaining the situation to the IRS could reduce or eliminate your ACA penalty.

• One of our clients missed a single checkbox on their forms, triggering a $6,000 fine. Discovering this error, we worked with the IRS to remedy the situation in just under two weeks, with nothing owed.

Get help!

If you’re staring down IRS letter 226j, know you’re not alone—many businesses receive this unpleasant surprise in the mail. Contact James Moore’s HR Consulting Team for more information about how to reduce or eliminate your ACA penalty and get your business back in good standing with the IRS.