For some employers, the end of 2017 could bring some unwanted news from the IRS.
Recently, the IRS signaled it will begin to send enforcement letters to firms that owe back penalties for not complying with the Affordable Care Act's "Employer Shared Responsibility Requirement" in calendar year 2015 (tax season 2016). According to the IRS, affected firms should expect to see the letters late this year.
Under the Affordable Care Act, employers with at least 50 full-time employees (or full-time equivalents) must offer health coverage to those associates. They must also offer minimum essential coverage to the employees, and the coverage must meet an affordability standard. Firms complete IRS Forms 1094-1095 to document compliance with ACA.
In a story published Thursday, the New York Times estimated that "thousands" of businesses could soon be receiving Letter 226J, which outlines what firms owe to satisfy their obligation under ACA.
Firms can dispute the proposed penalties, and the IRS website offers some guidance on the appeals process.
We can help. Contact a Plexus client service team representative in Deer Park, Ill. (847.307.6100), Chicago (312.606.4800), Dallas (972.770.5010), or Oklahoma City (405.840.3033). We’re here to help – and we’re happy to help.