ACA Update for Employers: Employee Subsidies and IRS Fines
Webinar: Tuesday, June 14, 2016 at 1:00 PM ET
With Affordable Care Act (ACA) reporting deadlines almost here, many employers understand why they can’t afford to wait to start preparing for the next ACA compliance challenges in 2016. For most, this means looking forward to the management of subsidy notifications and appeals, as well as potential IRS fines down the road.
While the IRS will use the information on Forms 1094 and 1095 to determine which employers are fined for failing to comply with the Employer Shared Responsibility Provisions, it’s important to understand that these fines are triggered by subsidies (Advanced Premium Tax Credits). In other words, if an employee who is eligible for coverage through their employer goes to an Exchange and receives a subsidy to offset the cost of health care through the Exchange, the employer could be fined if they did not offer qualifying health benefits. Forms 1094 and 1095 will determine whether the employer is fined and how much.
Although the processes for appealing subsidies and IRS fines are wholly separate, failing to handle subsidy notifications and appeals properly and in a timely manner can lead to potential IRS fines down the road.
Join Colin Carey, Senior Manager for Equifax’s Claim Services, and Alan Tawshunsky, Principal at Tawshunsky Law Firm PLLC and former Deputy Associate Chief Counsel for the IRS, as they discuss the next ACA challenges employers face. They’ll provide an overview of the subsidy application and appeal processes and how this can translate into IRS fines down the road. While the IRS has not released final guidance on how fines will be assessed, they will also discuss what this process could look like and how you can protect your organization from penalties down the road.
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