IRS Issues Pay Or Play Enforcement Guidance

Matt Pfeiffenberger Health Benefits, Large Group Benefits (100+), News

On Nov. 2, 2017, the Internal Revenue Service (IRS) updated its Questions and Answers (Q&As) on the employer shared responsibility rules under the Affordable Care Act (ACA) to include information on enforcement. Specifically, these Q&As include guidance on: How an employer will know that it owes an employer shared responsibility penalty; Appealing a penalty assessment; and Procedures for paying any penalties owed. The IRS also maintains a website on understanding Letter 226-J, as well as a sample letter, which will be used to inform employers of their potential penalty liability. Action Steps –┬áNo penalties have been assessed under the employer shared responsibility rules at this time. However, employers subject to these rules are still responsible for compliance. These Q&As indicate …