This three part series focuses on what employers should be doing now for 2018 ACA compliance and reporting, including addressing IRS Penalty Letter 226-J.
IRS employer penalties are a reality of the Affordable Care Act. If your organization receives an IRS Letter 226-J, you need to take immediate steps:
- Look at the due date – Timely response to the IRS is critical.
- Understand why you received the Letter 226-J – Did you submit a portion of the 1094 in error? Was the “minimum essential coverage” designation incorrect?
- Review employees named in the letter as having received subsidies through a Health Insurance Marketplace – What months did they receive the subsidies and why?
- Be prepared to provide documentation– Seek the assistance of legal counsel or a full-service ACA compliance and reporting service to help demonstrate a) a qualifying offer was made, but waived, or b) the employee did not qualify to receive an offer.
- Make sure your organization is getting subsidy notices. While delivery of Marketplace notices may be running behind, confirm who is to receive such notices, and have a standard operating procedure in place for timely follow up and resolution when needed.
Want to know more about IRS penalties and how to be prepared to address them? Click here to sign up for a complimentary informational webinar conducted by HR professional and ACA expert Dr. Dianna Gainey.