IRS Letter 227-J is a crucial document for employers dealing with potential penalties under the Affordable Care Act (ACA). It represents one of several types of responses from the IRS regarding the Employer Shared Responsibility Payment (ESRP) assessments originally noted in IRS Letter … [Read more...]
Navigating the IRS Letter 227 Series: Understanding Your ACA Compliance Path
The IRS Letter 227 series serves as a critical follow-up in the Employer Shared Responsibility Payment (ESRP) process under the Affordable Care Act (ACA). These letters outline the next steps for employers after the initial assessment provided in Letter 226-J, detailing whether further action is … [Read more...]
Understanding IRS Letter 226-J: The $2,700 Penalty for ACA Reporting Failures
Employers who fail to comply with the Affordable Care Act (ACA) reporting requirements may receive IRS Letter 226-J, imposing a penalty of $2,700 per employee. This letter serves as the initial notification informing employers that they may be liable for an Employer Shared Responsibility Payment … [Read more...]
Decoding ACA Codes for Form 1095-C: A Comprehensive Guide
For employers subject to the Affordable Care Act (ACA), completing Form 1095-C accurately is crucial to maintaining compliance and avoiding costly penalties. At the heart of the form are Series 1 and Series 2 codes, which provide the IRS with essential details about the health insurance coverage … [Read more...]
What Defines a Full-Time Employee Under the ACA?
Determining who qualifies as a full-time employee under the Affordable Care Act (ACA) is more complex than it appears. However, getting this calculation right is crucial because it determines whether an organization qualifies as an Applicable Large Employer (ALE). ALE status is the key to … [Read more...]
