The IRS announced the 2018 adjusted annual penalty amounts for the Affordable Care Act’s (ACA) Employer Shared Responsibility provision as follows:

  • $2,320 per full-time employee for employers who do not offer minimum essential coverage (MEC)
  • $3,480 per full-time employee who is not offered health coverage that meets ACA’s affordability and minimum value standards

As a reminder, these penalties are triggered if at least one full-time employee receives a subsidy for health coverage through the Exchange / Marketplace.

The IRS has begun enforcement of the provision for the 2015 calendar year by sending Letter 226J to employers with proposed penalty assessments.  To avoid exposure to these penalties going forward, (applicable large) employers must review their health plan offerings for compliance.

This Compliance Bulletin explains the rules and penalties associated with the Employer Mandate:

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If you have any questions, contact your S.S. Nesbitt Benefits Consultant.