Which employers are at risk of penalization?
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Last modified 1/28/2021 7:27:19 AM EST
Receiving a huge penalty for failing to meet their ACA requirements, is an extremely stressful situation for employers. The following are reasons that Applicable Large Employers are penalized by the IRS.
- ACA penalties apply to employers(ALE) who fail to offer any coverage, or who offer coverage that does not provide Minimum Essential Coverage (MEC) to at least 95% of their full-time and full-time equivalent employees.
- Penalties apply to employers(ALE) whose coverage offerings do not meet the ACA standard for quality and/or affordability.
- Non-filing penalties also apply to employers (ALE) who fail to file forms with the IRS or fail to furnish copies to their employees in a timely manner. Failing to file accurate information with the IRS can result in huge financial penalties. The IRS continues to raise these penalty amounts each filing year.
If you are concerned about potential IRS penalties, check out our ACA penalty Calculator. This can help you calculate potential penalty amounts from the IRS.