According to the Affordable Care Act (ACA), employers with at least 50 full-time or full-time equivalent employees are required to offer affordable health care insurance to their employees. This was set to begin in calendar year 2015. Well … that requirement then changed for 2015 to employers with at least 100 employees. And then, in 2016, it reverted to at least 50 employees. Also, the IRS extended a
Many employers today are under a false impression that they have done everything they need to do at this time and are protected against ACA penalties as a result. Employers have interpreted that the January Executive Order to “ease the burden” of the ACA meant they didn’t have to file the required ACA forms &/or offer affordable coverage to their eligible employees. Other employers believe they are protected from penalties merely by timely filing forms for calendar year 2015 & 2016. The IRS lack of enforcement to date has only furthered these misconceptions and lent credence to this perception by employers. Employers submitted timely ACA information returns and the IRS said it was “Accepted” and employers resolved an “errors” reported by the IRS. So, that’s that, no worries, we’re good to go, right?
Not so fast according to industry insiders who say that the IRS has a good handle on employers and individual taxpayers that are subject to a “shared responsibility payment”. This is based on information gathered from the marketplace exchanges, insurance companies, employers and individual taxpayers.
On an IRS payroll industry call on August 3rd, 2017, the IRS reminded participants that it’s always better to file late than not at all. Stiff penalties apply for willful non-compliance in addition to any penalties for not offering compliant coverage to ACA-eligible employees. To that end, if your organization has not actively complied with the ACA, it’s time to start now. It’s clear by the