ComplianceMINUTE | Dan Kuperstein | ERISA Penalties Increase for Form 5500 Violations!

IRS Updates ACA Pay or Play Web Page for 2017 | June 22, 2017

By | Senior Vice President, Compliance | 6.22.2017
While many employers were probably hoping that the IRS was going to back down from enforcement of the ACA’s Employer Shared Responsibility provisions (commonly known as: Employer Mandate or Pay or Play provisions), it doesn’t look like that’s going to be the case. Dan Kuperstein explains the 2017 updates to the IRS’s Pay or Play web page.

Resources:
IRS Employer Shared Responsibility Provisions
ACA(now) – News on Washington

 

Video Transcript: 
Hi, I’m Dan Kuperstein, and welcome to ComplianceMINUTE.

While many employers were probably hoping that the IRS’ new leadership was going to back down from enforcement of the ACA’s Employer Shared Responsibility provisions (commonly referred to as the Employer Mandate or Pay or Play provisions), it doesn’t look like that’s going to be the case.
The IRS recently updated its website to include the new 2017 Pay or Play penalty assessment amounts, strongly suggesting that they plan on continued enforcement of the Employer Mandate.

Those penalties are:

  1. For an applicable large employer (or ALE) that does not offer minimum essential coverage to at least 95% of its full-time employees (and their dependents), it will be liable for the first type of employer shared responsibility payment (commonly referred to as the large penalty). On an annual basis, this payment is equal to $2,260 for each full-time employee, with the first 30 employees excluded from the calculation.
  2. For an ALE that does offer minimum essential coverage to at least 95% of its full-time employees (and their dependents), it will be liable for the second type of employer shared responsibility payment (commonly referred to as the “small penalty” or the “b penalty”). On an annual basis, this payment is equal to $3,390, but multiplied for each full-time employee who receives the premium tax credit.

For more information on this and other ACA topics, visit our Knowledge Center at corpsyn.com. Thank you.