Today’s update is about the ACA Shared Responsibility Letters expected to be sent out soon by the IRS. These letters will go to employers who may be required to pay a Shared Responsibility penalty for employees that enrolled in health insurance coverage through the health insurance marketplace and received a Premium Tax Credit. The letters will outline the process for reviewing and complying with the requirement, including a list of employees who received a Premium Tax Credit. Please do not ignore the letter. If you disagree with the information included in the letter (e.g., you can demonstrate that one or more employees were offered health insurance coverage that met the standards required by the ACA, etc.) then you will want to complete the steps by communicating this information to the IRS. If you agree with the information in the letter you will need to pay the Shared Responsibility penalty.
The document below provides an overview of the requirement and links to the IRS Frequently Asked Questions and the template letter.
Please note that EBS is sharing this information to assist you with your compliance planning. We recommend that you contact your legal counsel with specific questions relating to this law.
Ellen E. McPherson
Employee Benefits Solution