ACA Employer Mandate Penalty Notices

The Internal Revenue Service (IRS) has begun notifying employers of “potential liability” for the 2015 reporting year. Under the ACA’s Employer Mandate, applicable large employers (ALE’s) are required to offer “minimum essential health coverage that is affordable and provides minimum value to full-time employees (and their dependents)”.

JD Supra explains:

The ACA’s Employer Mandate requires that certain “applicable large employers” offer minimum essential health coverage that is affordable and provides minimum value to full-time employees (and their dependents). Generally, “applicable large employers” are employers with 50 or more full-time or full-time equivalent employees, although a 100-employee standard, rather than a 50-employee standard, was applied for 2015. Applicable large employers must also report certain health coverage information to the IRS and plan participants annually on Forms 1094 and 1095. Employers who do not offer compliant coverage may be faced with costly penalties.

Those who may be liable to the Employer Mandate penalty for 2015 will receive a notice over the next few weeks, after which there is an option to appeal the decision.
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