IRS Publishes 2018 ACA Employer Reporting Forms and Instructions

Breathe a sigh of relief that the newly published 2018 forms and instructions for employer ACA reporting include no substantive changes. As a result, employers will have a relatively easy time following the now-established routine for the forms. But, the few cosmetic changes to the forms won’t stifle the sighs – or groans – ofContinue reading “IRS Publishes 2018 ACA Employer Reporting Forms and Instructions”

IRS Insight on Letter 227 – Hint: It’s in Reply to Letter 226J

Those lucky employers who have already received a 226J letter from the IRS have a Letter 227 to look forward to! The Letter 227 is the acknowledgement letter Applicable Large Employers (ALEs) receive following their response to the Letter 226J. The Letter 226J provides a preliminary calculation of the amount that an ALE may oweContinue reading “IRS Insight on Letter 227 – Hint: It’s in Reply to Letter 226J”

ACA Affordability Measure for 2019 Announced

The IRS published Revenue Procedure 2018-34 announcing the affordability percentage measure for plan years beginning after calendar year 2018. The new amount is 9.86%. This new amount is an increase from the 2018 affordability percentage of 9.56%. Affordability was pegged at 9.69% in 2017. Employers who are applicable large employers (ALEs) use the affordability percentageContinue reading “ACA Affordability Measure for 2019 Announced”

Cautions and Caveats Regarding Health Care Sharing Ministries

There has been a significant increase in enrollment in health care sharing ministries over the years since enactment of the Affordable Care Act (ACA). ACA specifically referenced health care sharing ministries, allowing an exemption from the individual mandate for individuals participating in one. According to the Alliance of Health Care Sharing Ministries there are moreContinue reading “Cautions and Caveats Regarding Health Care Sharing Ministries”

IRS Pushes Back Due Date for ACA’s Employer Reporting

The IRS delivered a highly coveted holiday gift to employers when it announced that employers could delay sending 1095-B and 1095-C forms to employees. Notice 2018-06 was published just before Christmas. The notice allows applicable large employers (ALEs) subject to the ACA filing requirements to furnish the required notices to individuals as late as MarchContinue reading “IRS Pushes Back Due Date for ACA’s Employer Reporting”

ACA Employer Reporting Penalties Increase for 2018

Many employers are getting unwelcome mail from the IRS –Letter 226J- assessing employer shared responsibility penalties. Early reports of employers receiving these letters are that errors made on the 1094-C and 1095-C forms may be the trigger. Hopefully, these errors can be corrected and many of the penalties will be abated. But, this experience pointsContinue reading “ACA Employer Reporting Penalties Increase for 2018”

30 Days to Act on IRS Letter 226J

Nestled amid holiday cards may be a less welcome letter from the IRS. The IRS has confirmed that the initial notices to employers that they may owe employer shared responsibility (ESR) penalties are going out before year-end. Letter 226J will address preliminary calculations of amounts employers owe for tax year 2015. Employers subject to theContinue reading “30 Days to Act on IRS Letter 226J”

IRS Drops the Mic on Employer Shared Responsibility Payments

Employers who have been counting on the IRS to forget about employer shared responsibility payments apparently have run out of luck. The IRS recently revised one of their FAQ documents to outline their upcoming issuing of penalty demand letters. Employers can look forward to receiving Letter 226J. The letter will include: A summary table itemizingContinue reading “IRS Drops the Mic on Employer Shared Responsibility Payments”

Counting Employees Not as Easy as 1…2…3

Most children can count to 10 in preschool. The average child can count to 200 at age six. But, employee benefit professionals know that counting – when counting employees — is anything but easy. The reason that counting employees isn’t easy is that it depends why they’re being counted. Different laws at the federal andContinue reading “Counting Employees Not as Easy as 1…2…3”

IRS Releases New Employer Reporting Forms

First the “bad news”… Employers hoping that the IRS will relax ACA employer requirements may find the recent release of the draft 2017 employer reporting forms disheartening. Many had hoped that President Trump’s Executive Order directing the Department of the Treasury to review tax regulations to reduce the tax regulatory burdens would include ACA’s employerContinue reading “IRS Releases New Employer Reporting Forms”