ACA Enforcement Picks Up Steam

The IRS quietly began sending penalty assessments under the Affordable Care Act (ACA) last November. The agency began by penalizing applicable large employers who failed to offer minimum essential coverage to 70% of their full-time employees in 2015. Now, they are sending penalty letters to employers who offered coverage in 2015, but had at least one employee who went to the Marketplace and received a subsidy. In this case, if the IRS believes the employee was not offered coverage, or the coverage offered was unaffordable, it will assess a penalty. Insiders also warn that 2016 penalty assessments are coming soon.  If you receive a Letter 226J penalty assessment, we recommend reaching out to an attorney or another benefits specialist to help you respond. To contact the Fisher Phillips Benefits Group, please contact Tabatha George at 504-529-3845 or tgeorge@fisherphillips.com.