The IRS recently indicated that it would begin assessing tax penalties under the Affordable Care Act’s (ACA) employer shared responsibility.
To be in compliance with the ACA, and avoid any penalties, the health plans of applicable large employers (ALEs) must pass three tests.
The requirements of the Affordable Care Act (ACA) administered by the Internal Revenue Service seem to be always evolving. As changes come into play, employers and their HR staff must be diligent about staying informed and up-to-date. A lack of compliance is becoming increasingly costly for businesses.
As of February 1, 2016 the Shared Responsibility Employer Mandate aspect of the Patient Protection and Affordable Care Act (ACA) reporting requirements became effective for all employers.
The mandate involves a multi-step process for employers and a filing with the Internal Revenue Service (IRS), which went into effect at the beginning of this year. This will also require an additional figure entered into employee W-2 forms showing the total value of coverage during the calendar year.