Did you know that $4.5 billion in Affordable Care Act (ACA) employer mandate penalties were assessed by the IRS for the first assessment year alone (2015)? It is expected that by 2026, over $228 billion in penalties will have been assessed. This summer, the IRS began sending Letters 226-J for proposed 2017 ACA employer mandate penalties. Additionally, the IRS is increasing efforts to identify potential non-filers via Letter 5699.
One in every six large employers is currently at risk for compliance action by the IRS regarding the ACA penalties.
This is a reality and the fines can be significant! R&R Insurance provides evaluations and reconciliations for clients. However this is a constantly evolving process. In fact, we helped one client avoid a $118,213.26 penalty with our proven process. Read more here.
For more information regarding Letter 226-J, you can refer to our previous blog here.
For more information regarding Letter 5699, you can refer to our previous blog here.
[Note: The ACA requires applicable large employers (ALEs) to offer affordable, minimum value health coverage to their fulltime employees or pay a penalty. This employer mandate provision is also known as the “employer shared responsibility” or “pay or play” rules. An ALE is only liable for a pay or play penalty if one or more of its full-time employees receive a subsidy for coverage through the Marketplace/Exchange.]