On Feb. 21, 2020, the IRS Office of Chief Counsel released a memorandum clarifying that there is no applicable statute of limitations on pay or play penalty assessments under the Affordable Care Act (ACA). This means that there is no time limit for the IRS to issue a penalty assessment for employers
PCORI Fees Reinstated Through 2029
A federal spending bill enacted at the end of 2019 included several provisions affecting benefit plans. The bill repealed three major taxes and fees under the Affordable Care Act (ACA)—the Cadillac tax, the medical devices excise tax and the health insurance providers fee. The law also extended the
Pay or Play Penalties Cafeteria Plan Elections
The Affordable Care Act (ACA) requires applicable large employers (ALEs) to offer affordable, minimum value health coverage to their full-time employees (and dependents) or pay a penalty. This employer mandate is also known as the “employer shared responsibility” or “pay or play” rules. The
ACA Spending Bill Extends PCORI Fee and Repeals Cadillac and Other Taxes & Fees
On Dec. 20, 2019, President Trump signed into law a spending bill that prevents a government shutdown extends and repeals the following taxes and fees under the Affordable Care Act (ACA): Extends PCORI fees to fiscal years 2020-2029. Repeals Cadillac tax on high-cost group health coverage,
ACA Reporting Deadlines and Forms
IRS issued extension to furnishing statements to individual and released final forms for ACA reporting under Section 6055 and 6056. Upcoming ACA Reporting Deadlines Affordable Care Act (ACA) reporting under Section 6055 and Section 6056 for the 2019 calendar year is due in early 2020. Specifically,
IRS Provides Transition Relief for 2019 ACA Reporting
On Dec. 2, 2019, the Internal Revenue Service (IRS) issued Notice 2019-63 to: Extend the due date for furnishing forms under Sections 6055 and 6056 for 2019 from Jan. 31, 2020, to March 2, 2020; Extend good-faith transition relief from penalties related to 2019 information reporting under
ACA Reporting: Draft Forms for 2019 Released
On Nov. 13, 2019, the Internal Revenue Service (IRS) released draft 2019 forms and instructions for reporting under Internal Revenue Code (Code) Sections 6055 and 6056. 2019 draft Forms 1094-C and 1095-C (and related draft instructions) will be used by applicable large employers (ALEs) to report
Pay or Play Penalties will Increase for 2019 and 2020
On Sept. 11, 2019, the IRS updated their Questions and Answers (Q&As) on the employer shared responsibility rules under the Affordable Care Act (ACA), to include adjusted penalty amounts for 2019 and 2020. According to the FAQs, the penalty amounts will be increased as follows: For calendar