We all knew it was coming; the government has begun to send penalty letters.
The goverment has begun to send penalty letters. The purpose of these letters is to inform employers that they have one or more employees receiving a government subsidy. The letter will trigger the “pay or play” provision in the Affordable Care Act, and if you are not in compliance you will have to pay the penalty.
What is the Pay or Play provision?
“Under the Affordable Care Act’s employer shared responsibility provisions, certain employers (called applicable large employers or ALEs) must either offer minimum essential coverage that is “affordable” and that provides “minimum value” to their full-time employees (and their dependents), or potentially make an employer shared responsibility payment to the IRS.” www.irs.gov
Can you appeal this penalty?
After receiving this letter you have 90 days to appeal the decision by completing this form. On this form you need to show that you have provided employee benefits including affordable coverage to the employees listed in the letter. You will need to submit the completed form along with a letter containing: business name, EIN, primary contact, reason you are appealing, and the information that the employee was on the federal subsidy was not received.
I want to avoid the penalty but have never offered employee benefits.
Don’t worry, we can help. We can help you achieve compliance. You will be shocked by how much more affordable it is to offer employee benefits than to pay the penalty!