Penalty

Posted March 23rd, 2023 in Employers

Applicable Large Employers (ALEs) are those who employed 50 or more full-time equivalent employees in the previous calendar year. Under the Affordable Care Act (ACA) law, ALEs must offer minimum essential coverage to at least 95% of its full-time employees or they risk penalties. ALEs who fail to meet this offer requirement risk a significant penalty if just one full-time employee receives a subsidized individual health insurance plan through a Marketplace.
 

Posted October 7th, 2020 in Employers, Producers

The Internal Revenue Service (IRS) has issued draft reporting forms for the purpose of filing information necessary to enforce the Employer Mandate. The 2020 draft version of the applicable forms can be found below (with finalized versions expected to be released later this year):

Draft version of Form 1095-C

Posted August 13th, 2019 in Employers, Producers

Senator Susan Collins (R-ME) submitted an inquiry to the Internal Revenue Service (IRS) earlier this year asking two very specific questions. She wanted to know if penalties related to the Employer Mandate could be reduced or waived if it would cause a hardship on an employer. She also wanted to know if the IRS would extend the transition relief that was previously available to employers with 50-99 employees. Previous transition relief exempted most employers of this size from the Employer Mandate during its first year of implementation in 2015.

Posted April 15th, 2019 in Employers, Producers

The Internal Revenue Service (IRS) is continuing to send Letter 226J to employers for which the agency believes an Employer Mandate penalty is due. Currently, these notices are being sent to employers for penalties that apply to the 2016 calendar year.

Posted January 4th, 2018 in Producers, Employers

The Internal Revenue Service (IRS) issued Notice 2018-06 which provides some relief for those entities who are subject to reporting requirements under the Affordable Care Act (ACA).

In summary:

Forms 1095-B and/or 1095-C now must be furnished to employees and individuals by March 2, 2018, for the 2017 calendar year. This is a 30-day extension from the original deadline of January 31, 2018. No additional extensions will be granted by the IRS, even if requested by an employer.

Posted April 25th, 2017 in Producers, Employers

The Treasury Inspector General for Tax Administration (TIGTA) issued a report dated April 7th and entitled “Affordable Care Act: Assessment of Efforts to Implement the Employer Shared Responsibility Provision.” In other words, TIGTA issued a report about the efforts of the Internal Revenue Service (IRS) to collect Employer Mandate penalties.

Posted September 6th, 2016 in Producers, Employers, Individuals

The Affordable Care Act (ACA) continues to evolve. Here are 10 changes expected to take effect in 2017. 

Posted April 4th, 2016 in Producers, Employers, Individuals
H&R Block®, the largest tax services provider in the country, has indicated that so far this year the average penalty paid by those individuals without health insurance in 2015 is $383. The average penalty paid in 2014 was $172, reflecting an increase of $211 from the previous year. The penalties will be steeper in 2016 being the greater of $695 or 2.5% of income.  
 
Posted February 5th, 2016 in Producers, Employers, Individuals
2016 will be the first year that most Americans will receive a Form 1095. As you would suspect, several people are wondering which forms will be provided and when. Here is some basic information to help answer those questions.  
 
Posted December 18th, 2015 in Producers, Employers, Individuals

On December 11, 2015, the Department of Health and Human Services (HHS) posted guidance for states interested in seeking a State Innovation Waiver under Section 1332 of the Affordable Care Act (ACA).

Benefits Buzz

SUBSCRIBE TO THE FLEX BLOG

Tag Cloud

Archives

Stay Connected