It's about to get real, folks.
ACA penalties are on the way. And employers must prepare to respond.
In the next 45 days, the IRS will send fine notices to employers who have failed to comply with the Affordable Care Act (ACA). Guidance released by the IRS explains that Letter 226J will be sent to non-compliant employers with penalty amounts and violations outlined within. This is a clear indication that the IRS is ready to assess ACA penalties and serves as an important reminder for all employers that now is not the time to risk non-compliance.
The IRS made this announcement last week via question 58 on their web page “ Questions and Answers on Employer Shared Responsibility Provisions Under the Affordable Care Act.” This is the first-ever official guidance on how ACA penalties will be communicated to employers, as well as how employers may respond and make payments. Employers who do not respond by the date noted on the Letter will receive a Notice and Demand for the proposed penalty. The fine is subject to IRS lien and levy enforcement actions, and interest will accrue from the date of the Notice and Demand.
To learn more about the Letter 226J and what these actions mean to you, read our full blog post.