How do I add an ACA correction?
Use a correction file when the transmission status is accepted with errors. Use the Acknowledgement File to enter corrections in the employee information and employer information and then submit the correction file to the IRS.
Important! None of the changes that you make to the employee information or employer information will be updated to the Payroll application. You'll need to enter the corrections in the Payroll application later.
- Why you may need to add an ACA correction
ACA corrections ensure that the information you file with the IRS is accurate, complete, and aligned with what your employees receive on their Forms 1095-C. If an error is discovered after forms are generated or filed, adding a correction helps you resolve it cleanly and maintain compliance.
- Fix incorrect employee or coverage information
Sometimes a detail on a previously issued 1095-C isn't accurate, such as an incorrect SSN, eligibility code, coverage offer, or affordability information. A correction updates the IRS and provides the employee with the right version of their form.
- Address missing or incomplete data
If you discover that a field was left blank or a month of coverage was overlooked, a correction adds the missing information so the form accurately reflects the employee's year.
- Update records after filing
If forms have already been transmitted to the IRS and a mistake surfaces afterward, the only way to amend the record is to submit an official correction. This ensures your filing history remains consistent and compliant.
- Ensure employee and IRS records match
Employees rely on accurate 1095-C forms when preparing their personal tax returns. Submitting a correction prevents mismatches, questions, or delays that may occur if the employee's copy and the IRS's copy don't align.
Webinar: Set up ACA correction file
Setting up the ACA correction file begins at time marker 14m45s.
Before you get started
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You'll need the receipt number from the original ACA file that was submitted to the IRS.
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You'll need the Acknowledgement File from the Status page when you submitted the ACA electronic file. The Acknowledgement File will tell you the files that need to be corrected.
Setting up an ACA correction file
2. Click New (CTRL+N).
3. Use the Tax Year box to enter the tax year on the correction file.
4. Use the Correction Title box to enter the corrected ACA file name.
5. Use the Receipt ID box to enter the receipt ID from the acknowledgment file.
This is Part 1 of the UniqueRecordID or UniqueSubmissionID in the Acknowledgment File. <UniqueRecordID>Part-1|Part-2|Part-3</UniqueRecordID>
Example: 1095C-16-00034177
6. The Submission ID box is display only.
Note: This field is not available at this time.You've finished setting up the general properties on the ACA correction file. The next step is to correct the errors listed on the acknowledgement file.
Entering corrections to employee information
8. Click Add ACA Employee .
The employee's ACA information displays in the ACA Corrections view.
- Use the acknowledgement file to identify the error and then find and correct the error in the employee's information. You can change the employee's general information, offer and coverage, coverage provider, and dependents.
- When you have entered all of the corrections to the employee's information, you're ready to fix any errors in the employer's information.
Entering corrections to employer information
13. Correct the employer's information.
14. Click Save (CTRL+S).
You're done. Now, you're ready to create the electronic ACA file. When you set up the electronic ACA file, select Correction as the Transmission Type.
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