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Monthly
Newsletter
Brought
to you by Integrated Benefit Solutions
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April 2017 Issue
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How
to Correct Form 1094 & 1095 Errors
 To avoid
potential noncompliance penalties, employers should confirm the accuracy of
all Affordable Care Act (ACA) information returns and correct any errors as
soon as possible with both the IRS and their employees.
Errors on Forms
1094-C and 1095-C
Forms 1094-C and 1095-C are used by applicable large
employers to satisfy their reporting obligations. To correct
information on the paper version of the original Authoritative Transmittal
Form 1094-C, employers should take the following steps:
- Prepare
a new authoritative Form 1094-C including the correct information
- Enter
an "X" in the CORRECTED checkbox at the top of the form
- File
the standalone corrected authoritative Form 1094-C with the IRS
If
correcting information on the paper version of a Form 1095-C that was
previously filed with the IRS, employers should:
- Prepare
a new Form 1095-C
- Enter
an "X" in the CORRECTED checkbox at the top of the form
- File
the corrected Form 1095-C, along with a non-authoritative Form 1094-C
(DO NOT mark the CORRECTED checkbox on the Form 1094-C), with the IRS
- Furnish
the employee a copy of the corrected Form 1095-C (note that different
rules apply for an employer that is eligible to use the Qualifying
Offer Method)
For
more information on correcting errors on Forms 1094-C and 1095-C, see
the 2016
Instructions for Forms 1094-C and 1095-C. Section 7.1 of Publication 5165 provides instructions
for making corrections to Forms 1094-C and 1095-C filed electronically.
Errors on Forms
1094-B and 1095-B
Forms 1094-B and 1095-B are used by self-insuring employers that are not
considered applicable large employers, and by other parties that provide
minimum essential health coverage. If a Form 1095-B filed with the IRS on
paper contains an error, the employer should file a corrected return as
follows:
- Fully
complete a new Form 1095-B
- Enter
an "X" in the CORRECTED checkbox at the top of the form
- File
the corrected Form 1095-B, along with a transmittal Form 1094-B, with
the IRS
- Furnish
a copy of the corrected Form 1095-B to the person identified as the
responsible individual
For more
information on correcting errors on Forms 1094-B and 1095-B, see the 2016 Instructions for
Forms 1094-B and 1095-B. Section 7.1 of Publication 5165 provides instructions
for making a correction to Forms 1095-B filed electronically.
For more on employer information reporting requirements, check out our
section on Information Reporting.
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2017
Values for Employer-Provided Vehicles Released
 The IRS has
released the maximum vehicle values for 2017 that taxpayers need to determine
the value of personal use of employer-provided vehicles under the IRS’s
special valuation rules.
2017 Maximum Vehicle
Values
- The
maximum value of employer-provided vehicles first made available to
employees for personal use in calendar year 2017, for which the vehicle cents-per-mile
valuation rule provided under IRS Regulation section
1.61–21(e) may be applicable, is $15,900 for
a passenger automobile, and $17,800 for a truck or van.
- The
maximum value of employer-provided vehicles first made available to
employees for personal use in calendar year 2017, for which the fleet-average valuation rule provided
under IRS Regulation
section 1.61–21(d) may be applicable, is $21,100 for
a passenger automobile, and $23,300 for a truck or van.
Click here to read the IRS release on the 2017
maximum vehicle values.
To learn more about the tax consequences of various employer-provided
fringe benefits, visit our Fringe Benefits section.
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USCIS
Updates Form I-9 Handbook
 U.S. Citizenship
and Immigration Services (USCIS) has released an updated M-274, Handbook for Employers,
which provides guidance for complying with the requirements of Form
I-9, Employment
Eligibility Verification.
Updated Handbook
Among other things, the updated handbook provides information and answers
on the following topics:
- Completing
Form I-9;
- Retaining
Form I-9;
- Acceptable
documents for verifying employment authorization and identity; and
- Unlawful
discrimination and penalties for prohibited practices.
Click here to access the
updated handbook.
For more information on complying with employment eligibility verification
requirements, please visit our section on Form I-9.
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3
Tax Recordkeeping Tips for Employers
 Keeping good
records not only makes tax filing easier and faster, but it can also help
you monitor the progress of your business, prepare your financial
statements, and support items reported on your tax returns. Here are three
simple tips from the IRS to help you get organized:
1. Save Certain
Business Records
The following are some of the types of records you should keep:
- Gross receipts are
the income you receive from your business. You should keep supporting
documents that show the amounts and sources of your gross receipts.
- Purchases are the items you buy
and resell to customers. Your supporting documents should show the
amount paid and that the amount was for purchases.
- Expenses are the costs you incur
(other than purchases) to carry on your business. Your supporting
documents should show the amount paid and a description showing that
the amount was for a business expense.
- Assets are the property, such
as machinery and furniture, that you own and use in your business. You
need records to compute the annual depreciation and the gain or loss
when you sell the assets.
2.
Keep Employment Tax Records
The following information should be available for IRS review:
- Your
employer identification number (EIN);
- Amounts
and dates of all wage, annuity, and pension payments;
- Amounts
of tips reported;
- The
fair market value of in-kind wages paid;
- Names,
addresses, social security numbers, and occupations of employees and
recipients;
- Any
employee copies of Forms W-2 that were returned to you as
undeliverable;
- Dates
of employment;
- Periods
for which employees and recipients were paid while absent due to
sickness or injury and the amount and weekly rate of payments you or
third-party payers made to them;
- Copies
of employees' and recipients' income tax withholding allowance
certificates;
- Dates
and amounts of tax deposits you made;
- Copies
of returns filed;
- Records
of allocated tips; and
- Records
of fringe benefits provided, including substantiation.
3.
Store and Organize Your Records
Business owners should generally keep all employment-related tax records for at least
4 years after the date that the tax becomes due, or
after the tax is paid, whichever is later. The length of time you should
keep other documents depends on the action, expense, or
event which the document records.
You can review our section on Employee Records and Files for information on other
federal recordkeeping responsibilities for employers.
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Hiring
and Managing Seasonal Employees
With the
summer hiring season approaching, employers should begin thinking about how
best to hire and manage seasonal employees. Employers who do not dedicate time
to these critical steps risk having to face disgruntled employees, unhappy
customers, and even legal violations. To learn some best practices for
hiring and managing seasonal employees, please watch the video below.
To learn
how to attract top talent to your company, check out our Recruitment &
Hiring section.
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