The IRS has updated its FAQs to indicate that penalty letters for non-compliance with the Affordable Care Act's employer mandate will begin being sent to applicable large employers for calendar year 2015 penalties in late 2017. The penalty letters, known as Letter 226J, will propose penalties based on employer reporting and employee tax returns, and employers will have 30 days to respond by agreeing, disagreeing and providing documentation, or requesting an appeal. If employers do not respond, penalties will be assessed. Employers receiving letters should review carefully, gather documentation, and respond in a timely manner or pursue an appeal where applicable to potentially reduce penalties.
IRS Updates Employer Mandate FAQs, Indicates that Penalty Letters are Imminent
The Internal Revenue Service (IRS) has updated its list of frequently asked questions (FAQs) on the Affordable Care Act’s employer shared responsibility provisions – also known as the “pay or play” mandate. In particular, questions 55 through 58 provide guidance for employers who may be subject to shared responsibility payments. The FAQs indicate that the IRS will begin sending penalty letters to applicable large employers (ALEs) that owe penalties for calendar year 2015 “in late 2017.”
CBIZ BFS Reprint - Executive Order for Payroll Tax Holiday Puts Employers in ...CBIZ, Inc.
The executive order directs the Treasury Secretary to defer the withholding and payment of employees' 6.2% share of Social Security payroll taxes from September through December 2020 for those earning under $100,000 annually. However, there is uncertainty around the legality of this action. Employers are left in a difficult situation, as they must decide whether to implement the deferral by passing savings to employees and hoping Congress later forgives the taxes, or to ignore the order and risk noncompliance. Each option carries financial and legal risks for businesses. The order may exceed the authority granted by the law it cites and effectively waives taxes rather than deferring them.
Health Reform Bulletin 138 | Status of Individual Mandate; Understanding IRS ...CBIZ, Inc.
Last year, the mantra for the Affordable Care Act (ACA) went something like this: repeal, repeal and replace, leave it alone, repeal, repeal and replace….
This notwithstanding, the ACA remains the law of the land, with the exception of the penalty tax imposed on individuals for failure to maintain minimum essential coverage (MEC). The Tax Cuts and Jobs Act reduces this tax to zero, effective January 1, 2019. The requirements to maintain health coverage continues to apply, despite the absence of a penalty.
Payroll Webinar: The A to Z of Payroll Garnishments Part 2Ascentis
Tax levies and creditor garnishments can be some of the most complex tasks required of any payroll department. Payroll must understand all the laws that apply towards processing these types of garnishments backwards and forwards. It is sometimes even up to the payroll department to catch and correct any errors that have been made by anyone else along the way!
Precise and accurate compliance with garnishment regulation can help to reduce or eliminate the emotional and financial toll that can result from these unfortunate situations as well stave off any penalties that may result if processed incorrectly.
This webinar concentrates on processing garnishments, other than child support, in the payroll department. We’ll cover the federal rules for creditor garnishments, the IRS rules for federal tax levies, the various aspects of state tax levies, the key points for processing state creditor garnishments, how to handle voluntary wage assignments like payday loans and student loans. And that’s not all – we’ll also review the IRS Form 668-W.
Overview of the Cadillac Tax
The “Cadillac Tax” was created as part of the Patient Protection and Affordable Care Act of 2010 (PPACA). The Cadillac Tax is an excise tax that was designed to generate revenue to help in paying the Federal Government’s cost of the Affordable Care Act. It was also to serve as a deterrent against the purchase of high-cost plans. When you have a plan where members have larger personal out of pocket, those enrolled would tend to become better consumers and in turn help hold down the growing cost of healthcare.
Review our research and analysis on the Cadillac Tax to gain more insight into details. Contact McGohan-Brabender to explore options.
https://www.mcgohanbrabender.com/
Payroll Webinar: The Essentials for Third Party Sick Pay in 2020Ascentis
This webinar discusses the proper taxation and reporting of the fringe benefit known as third party sick pay. It discusses what is and is not third party sick pay, how the taxation is affected by the status of the provider (is or is not the employer’s agent), when this type of payment is taxable and/or reportable and who is responsible for this taxation and reporting.
IRS Continues to Attack Accrued Bonus PlansCBIZ, Inc.
Businesses with annual employee bonus plans have long operated under the assumption that as long as they pay bonuses within 2 ½ months after the end of the year in which the bonuses are earned, the bonuses are deductible in the year earned, rather than in the year paid.
TriStar Pension Consulting presents changes to Retirement plans like 401(k)'s in the year 2015 along with pending legislation. Find out what is happening in Washington and how it will affect your Retirement Plan.
IRS Updates Employer Mandate FAQs, Indicates that Penalty Letters are Imminent
The Internal Revenue Service (IRS) has updated its list of frequently asked questions (FAQs) on the Affordable Care Act’s employer shared responsibility provisions – also known as the “pay or play” mandate. In particular, questions 55 through 58 provide guidance for employers who may be subject to shared responsibility payments. The FAQs indicate that the IRS will begin sending penalty letters to applicable large employers (ALEs) that owe penalties for calendar year 2015 “in late 2017.”
CBIZ BFS Reprint - Executive Order for Payroll Tax Holiday Puts Employers in ...CBIZ, Inc.
The executive order directs the Treasury Secretary to defer the withholding and payment of employees' 6.2% share of Social Security payroll taxes from September through December 2020 for those earning under $100,000 annually. However, there is uncertainty around the legality of this action. Employers are left in a difficult situation, as they must decide whether to implement the deferral by passing savings to employees and hoping Congress later forgives the taxes, or to ignore the order and risk noncompliance. Each option carries financial and legal risks for businesses. The order may exceed the authority granted by the law it cites and effectively waives taxes rather than deferring them.
Health Reform Bulletin 138 | Status of Individual Mandate; Understanding IRS ...CBIZ, Inc.
Last year, the mantra for the Affordable Care Act (ACA) went something like this: repeal, repeal and replace, leave it alone, repeal, repeal and replace….
This notwithstanding, the ACA remains the law of the land, with the exception of the penalty tax imposed on individuals for failure to maintain minimum essential coverage (MEC). The Tax Cuts and Jobs Act reduces this tax to zero, effective January 1, 2019. The requirements to maintain health coverage continues to apply, despite the absence of a penalty.
Payroll Webinar: The A to Z of Payroll Garnishments Part 2Ascentis
Tax levies and creditor garnishments can be some of the most complex tasks required of any payroll department. Payroll must understand all the laws that apply towards processing these types of garnishments backwards and forwards. It is sometimes even up to the payroll department to catch and correct any errors that have been made by anyone else along the way!
Precise and accurate compliance with garnishment regulation can help to reduce or eliminate the emotional and financial toll that can result from these unfortunate situations as well stave off any penalties that may result if processed incorrectly.
This webinar concentrates on processing garnishments, other than child support, in the payroll department. We’ll cover the federal rules for creditor garnishments, the IRS rules for federal tax levies, the various aspects of state tax levies, the key points for processing state creditor garnishments, how to handle voluntary wage assignments like payday loans and student loans. And that’s not all – we’ll also review the IRS Form 668-W.
Overview of the Cadillac Tax
The “Cadillac Tax” was created as part of the Patient Protection and Affordable Care Act of 2010 (PPACA). The Cadillac Tax is an excise tax that was designed to generate revenue to help in paying the Federal Government’s cost of the Affordable Care Act. It was also to serve as a deterrent against the purchase of high-cost plans. When you have a plan where members have larger personal out of pocket, those enrolled would tend to become better consumers and in turn help hold down the growing cost of healthcare.
Review our research and analysis on the Cadillac Tax to gain more insight into details. Contact McGohan-Brabender to explore options.
https://www.mcgohanbrabender.com/
Payroll Webinar: The Essentials for Third Party Sick Pay in 2020Ascentis
This webinar discusses the proper taxation and reporting of the fringe benefit known as third party sick pay. It discusses what is and is not third party sick pay, how the taxation is affected by the status of the provider (is or is not the employer’s agent), when this type of payment is taxable and/or reportable and who is responsible for this taxation and reporting.
IRS Continues to Attack Accrued Bonus PlansCBIZ, Inc.
Businesses with annual employee bonus plans have long operated under the assumption that as long as they pay bonuses within 2 ½ months after the end of the year in which the bonuses are earned, the bonuses are deductible in the year earned, rather than in the year paid.
TriStar Pension Consulting presents changes to Retirement plans like 401(k)'s in the year 2015 along with pending legislation. Find out what is happening in Washington and how it will affect your Retirement Plan.
Payroll Webinar: The A to Z of Garnishments Part 2Ascentis
Tax levies and creditor garnishments can be some of the most complex tasks required of any payroll department. If garnishments are not handled correctly, you may find yourself facing situations that become extremely costly both financially and emotionally. Courts, federal and state regulations, bureaucracies, lawyers and a multitude of other factors can complicate even the most basic procedures. Add in the emotional turmoil that often accompanies garnishment orders and even small errors can become major disasters.
The reality is that all of the people and entities involved tax levies and other types of creditor garnishments expect action from the payroll department. Payroll must understand all the laws that apply towards processing these types of garnishments backwards and forwards. It is sometimes even up to the payroll department to catch and correct any errors that have been made by anyone else along the way! Precise and accurate compliance with garnishment regulation can help to reduce or eliminate the emotional and financial toll that can result from these unfortunate situations as well stave off any penalties that may result if processed incorrectly
GASB's New Rules on Uniformity and Disclosure CBIZ, Inc.
An overview of the newly issued GASB rules
applicable to public pension plans, the reasons
for their implementation and issues created
by the new standards
HR Webinar: The American Rescue Plan Act of 2021: New Employer Opportunities ...Ascentis
On March 11, 2021, President Biden signed into law H.R. 1319, the “American Rescue Plan Act of 2021” (APRA). The latest in an extended series of COVID-19 economic relief bills, with a price tag of $1.9 trillion and weighing in at an impressive 628 pages, ARPA will bring cumulative US federal pandemic relief spending to approximately $5.7 trillion. While the new law’s consumer provisions – like direct stimulus payments to about 89% of US taxpayers, extended unemployment benefits, and increased child tax credits – have gotten almost all the press coverage related to this law, as with prior laws (FFCRA, CARES Act, CAA) there are many employer-impacting provisions that have so far “flown under the radar.”
At Ascentis, we’ve hauled out our trusty “HCM radar detector” to hone in on just those provisions which may impact and delight (or maybe not?) employers, and the HR community, around the country.
CAPTURING TAX OPPORTUNITIES WITHIN THE FINAL TANGIBLE PROPERTY REGULATIONSCBIZ, Inc.
The tangible property regulations (TPRs) are the most dramatic changes in tax law to affect businesses since the overhaul of the Internal Revenue Code in 1986. The TPRs apply to all forms of business, whether a "C" corporation, an "S" corporation, a partnership, an LLC, a sole proprietorship (Schedule C on individual return), or a rental (Schedule E on individual return).
The facts and circumstances of each business situation should be carefully evaluated to determine the proper treatment of all business expenditures for materials and supplies, repairs and maintenance, and asset purchases along with the impact on subsequent depreciation. Needless to say, these regulations are quite complex and require timely attention.
This document summarizes various provisions of the Patient Protection and Affordable Care Act related to taxes including: minimum value requirements for employer-sponsored health plans; information reporting requirements for health coverage; rules around the small business health care tax credit; and changes to health flexible spending arrangements. It also discusses the health insurance premium tax credit, the excise tax on indoor tanning services, and reporting of employer-provided health coverage on W-2 forms.
The Impact of the New Tax Law on Real Estate InvestmentCBIZ, Inc.
The bill introduced as the Tax Cuts and Jobs Act (TCJA) was signed into law by the President on December 22, 2017. It is the most far reaching tax change to affect the real estate sector since the Tax Reform Act of 1986. Generally speaking, real estate fared well under the new law.
HR Webinar: Immigration Changes and the Impact to Employers: 2018-2019Ascentis
The document discusses changes to US immigration policies and their impact on employers. It provides an overview of the E-Verify system, which allows employers to electronically verify the employment eligibility of new hires. While E-Verify participation is voluntary in most states, 24 states have laws requiring its use by some employers. The number of employers enrolled in E-Verify has increased significantly in recent years. The document also outlines penalties for hiring undocumented workers, which can include fines and jail time depending on the circumstances. Employers are advised to take compliance seriously given estimates of millions of undocumented immigrants in the US workforce.
This document provides an overview and agenda for a presentation on compliance outlook and regulations for health and welfare plan sponsors. The presentation covers recent regulatory developments in 2015, upcoming requirements and deadlines in 2016, and beyond. Key items that will be discussed include 2016 benefit limits, W-2 health cost reporting, PCORI and reinsurance fees, employer shared responsibility rules, and health coverage reporting requirements. The presentation aims to help employers understand past and future compliance obligations and steps to take to remain compliant.
This document outlines 5 key tax issues for small business owners to consider in 2017:
1. Affordable Care Act reporting requirements - Applicable large employers must report healthcare coverage details on Form 1095-C by March 2, 2017.
2. Accelerated W-2 filing - A new law requires employers to file W-2s by January 31, 2017 instead of the usual February deadline.
3. Accelerated depreciation - Equipment purchased and put into use by December 31, 2016 is eligible for Section 179 deductions and bonus depreciation.
4. 401(k) tax credit - Businesses starting a 401(k) plan this year can claim a tax credit for
Tax Strategies In A Challenging Economy.Pptpspizzirri
This document discusses various tax strategies that the law firm Hall Booth Smith & Slover employs to help clients enhance cash flow and achieve permanent tax savings. Some strategies mentioned include taking advantage of tax credits, intellectual property planning, severance payments structuring, meals and entertainment deductions, and net operating loss carrybacks. The firm reviews clients' individual and business situations to determine the best strategies.
Payroll Webinar: W-2’s vs. 1099’s: Understanding Who Should be an Independent...Ascentis
This webinar examines how the common law rule is used to determine worker status and which three requirements are used to correctly classify a worker as an independent contractor along with the requirements for when a worker must be classified as an employee. Misclassifying employees and independent contractors are getting more costly by the day. With federal and state agencies joining forces to combat misclassification, fines and penalties have skyrocketed. And every day the misclassification continues the penalties mount up and up until this ticking time bomb finally explodes! Find out how to defuse that ticking bomb by joining renowned payroll expert Vicki M. Lambert, CPP for this information packed webinar!
The IRS issued a second notice regarding guidance on the Cadillac tax, set to take effect in 2018. The notice addresses issues such as who is liable for the tax, employer aggregation rules, determining the cost of coverage, and adjusting the dollar limits based on employee age and gender. The IRS is considering designating Form 720 as the method for paying the excise tax on a particular quarter of the calendar year. Comments on the notices are due by October 1, 2015, after which the IRS intends to issue proposed regulations.
The document summarizes potential accounting implications of the recent US tax reforms for companies with US operations preparing financial statements under IFRS. Key impacts include reducing the US corporate tax rate from 35% to 21% effective January 1, 2018, allowing 100% expensing of capital expenditures made between September 27, 2017 and December 31, 2022, and changes to how net operating losses can be carried forward. Companies will need to analyze the tax reform's effects in detail to determine the financial reporting impacts.
The Tennessee Department of Commerce and Insurance is adopting new unfair claims settlement practice rules to provide minimum standards for claim investigations and dispositions. The new rules add definitions, require prompt acknowledgment and responses to claims, and establish timelines for claim activities. They also outline standards for fair property, auto, and life insurance claim settlements. The new rules are based on National Association of Insurance Commissioners models and were supported by the insurance industry.
This letter from FedLoan Servicing informs the recipient, James A. Wellington, that:
1) He has been granted an unemployment deferment on multiple student loans from December 2012 through December 2013.
2) If interest is not paid on unsubsidized loans during the deferment period, it will be added to the principal balance, increasing the total cost of the loans.
3) Options for repayment plans, postponing payments through deferment or forbearance, and discharging loans in special circumstances are described.
A new federal law moves up the deadline for employers and small businesses to file W-2 and 1099 forms to January 31st. This new earlier deadline is intended to help the IRS identify fraudulent tax returns and refunds more quickly. As a result, some taxpayers claiming the Earned Income Tax Credit or Additional Child Tax Credit will have their refunds delayed until at least February 15th to allow for additional verification by the IRS. Employers are still required to provide copies of W-2 forms to employees by January 31st.
Payroll Webinar: Tax Levies and Creditor Garnishments: What Payroll Must Know...Ascentis
This webinar concentrates on processing garnishments in the payroll department other than child support. It covers the federal rules for creditor garnishments, the IRS rules for federal tax levies, the various aspects of state tax levies, the key points for processing state creditor garnishments, how to handle voluntary wage assignments such as payday loans and student loans. It includes best practices for reconciling and processing the garnishments in the payroll department. Sample memos for communicating with the employee concerning garnishments are included. The IRS Form 668-W is reviewed.
CARES Act - Key Takeaways for Healthcare OrganizationsCitrin Cooperman
The document summarizes key provisions of the CARES Act for healthcare organizations, including:
1) Medicare advance payments of up to 100% of prior payments, to be recouped starting 120 days later over a period of 210 days, with interest charged after 90 days for any remaining balance.
2) $100 billion in funding for healthcare providers through the Provider Relief Fund, with an initial $30 billion distributed based on 2019 Medicare fee-for-service billings.
3) Terms and conditions for the Provider Relief Fund distribution including certifying that funds will be used for COVID-19 related expenses and losses, not balance billing patients, and reporting requirements for recipients of over $150,000.
Maximizing Deductions in Light of the Section 162(m) GuidanceWinston & Strawn LLP
Winston & Strawn’s Employee Benefits & Executive Compensation Practice hosted “Maximizing Deductions in Light of the Section 162(m) Guidance” on September 6, 2018.
The IRS recently issued Notice 2018-68 providing much anticipated guidance on the key issues with respect to the Section 162(m) amendments added by the Tax Cuts and Jobs Act.
Partners Michael Melbinger, Nyron Persaud, and Ruth Wimer presented this webinar focused on understanding the impact of Notice 2018-68, including:
- Brief overview of the changes in Section 162(m) as a result of the Tax Act
- In depth discussion and analysis of Notice 2018-68: Covered employee, written binding contract, material modification
- “To do” list for maximizing deductions going forward
- Alternative compensation strategies
- Proxy Statement Reporting
- Accounting issues
Learn more here: https://www.winston.com/en/thought-leadership/maximizing-deduction-in-light-of-the-section-162m-guidance.html.
The IRS issued a notice confirming its delay of the employer pay-or-play excise tax until 2014 and provided additional clarification. With the delay, employers have time to focus on other Affordable Care Act compliance issues that were previously secondary to pay-or-play, such as updated HIPAA privacy policies and notices of exchange availability. Employers can also expect inquiries from employees and health insurance exchanges regarding their coverage to determine exchange subsidy eligibility. Willis will continue monitoring all provisions affecting employers and provide updates.
Health Reform Bulletin 132 | IRS Releases Finalized 2017 Forms and InstructionsCBIZ, Inc.
The 2017 Affordable Care Act reporting is upon us. The forms to be used, and the instructions for those forms, have just been released by the Internal Revenue Service. As a reminder, there are two annual reporting obligations imposed by IRC Section 6055 minimum essential coverage reporting, and by IRC Section 6056, employer shared responsibility reporting.
Payroll Webinar: The A to Z of Garnishments Part 2Ascentis
Tax levies and creditor garnishments can be some of the most complex tasks required of any payroll department. If garnishments are not handled correctly, you may find yourself facing situations that become extremely costly both financially and emotionally. Courts, federal and state regulations, bureaucracies, lawyers and a multitude of other factors can complicate even the most basic procedures. Add in the emotional turmoil that often accompanies garnishment orders and even small errors can become major disasters.
The reality is that all of the people and entities involved tax levies and other types of creditor garnishments expect action from the payroll department. Payroll must understand all the laws that apply towards processing these types of garnishments backwards and forwards. It is sometimes even up to the payroll department to catch and correct any errors that have been made by anyone else along the way! Precise and accurate compliance with garnishment regulation can help to reduce or eliminate the emotional and financial toll that can result from these unfortunate situations as well stave off any penalties that may result if processed incorrectly
GASB's New Rules on Uniformity and Disclosure CBIZ, Inc.
An overview of the newly issued GASB rules
applicable to public pension plans, the reasons
for their implementation and issues created
by the new standards
HR Webinar: The American Rescue Plan Act of 2021: New Employer Opportunities ...Ascentis
On March 11, 2021, President Biden signed into law H.R. 1319, the “American Rescue Plan Act of 2021” (APRA). The latest in an extended series of COVID-19 economic relief bills, with a price tag of $1.9 trillion and weighing in at an impressive 628 pages, ARPA will bring cumulative US federal pandemic relief spending to approximately $5.7 trillion. While the new law’s consumer provisions – like direct stimulus payments to about 89% of US taxpayers, extended unemployment benefits, and increased child tax credits – have gotten almost all the press coverage related to this law, as with prior laws (FFCRA, CARES Act, CAA) there are many employer-impacting provisions that have so far “flown under the radar.”
At Ascentis, we’ve hauled out our trusty “HCM radar detector” to hone in on just those provisions which may impact and delight (or maybe not?) employers, and the HR community, around the country.
CAPTURING TAX OPPORTUNITIES WITHIN THE FINAL TANGIBLE PROPERTY REGULATIONSCBIZ, Inc.
The tangible property regulations (TPRs) are the most dramatic changes in tax law to affect businesses since the overhaul of the Internal Revenue Code in 1986. The TPRs apply to all forms of business, whether a "C" corporation, an "S" corporation, a partnership, an LLC, a sole proprietorship (Schedule C on individual return), or a rental (Schedule E on individual return).
The facts and circumstances of each business situation should be carefully evaluated to determine the proper treatment of all business expenditures for materials and supplies, repairs and maintenance, and asset purchases along with the impact on subsequent depreciation. Needless to say, these regulations are quite complex and require timely attention.
This document summarizes various provisions of the Patient Protection and Affordable Care Act related to taxes including: minimum value requirements for employer-sponsored health plans; information reporting requirements for health coverage; rules around the small business health care tax credit; and changes to health flexible spending arrangements. It also discusses the health insurance premium tax credit, the excise tax on indoor tanning services, and reporting of employer-provided health coverage on W-2 forms.
The Impact of the New Tax Law on Real Estate InvestmentCBIZ, Inc.
The bill introduced as the Tax Cuts and Jobs Act (TCJA) was signed into law by the President on December 22, 2017. It is the most far reaching tax change to affect the real estate sector since the Tax Reform Act of 1986. Generally speaking, real estate fared well under the new law.
HR Webinar: Immigration Changes and the Impact to Employers: 2018-2019Ascentis
The document discusses changes to US immigration policies and their impact on employers. It provides an overview of the E-Verify system, which allows employers to electronically verify the employment eligibility of new hires. While E-Verify participation is voluntary in most states, 24 states have laws requiring its use by some employers. The number of employers enrolled in E-Verify has increased significantly in recent years. The document also outlines penalties for hiring undocumented workers, which can include fines and jail time depending on the circumstances. Employers are advised to take compliance seriously given estimates of millions of undocumented immigrants in the US workforce.
This document provides an overview and agenda for a presentation on compliance outlook and regulations for health and welfare plan sponsors. The presentation covers recent regulatory developments in 2015, upcoming requirements and deadlines in 2016, and beyond. Key items that will be discussed include 2016 benefit limits, W-2 health cost reporting, PCORI and reinsurance fees, employer shared responsibility rules, and health coverage reporting requirements. The presentation aims to help employers understand past and future compliance obligations and steps to take to remain compliant.
This document outlines 5 key tax issues for small business owners to consider in 2017:
1. Affordable Care Act reporting requirements - Applicable large employers must report healthcare coverage details on Form 1095-C by March 2, 2017.
2. Accelerated W-2 filing - A new law requires employers to file W-2s by January 31, 2017 instead of the usual February deadline.
3. Accelerated depreciation - Equipment purchased and put into use by December 31, 2016 is eligible for Section 179 deductions and bonus depreciation.
4. 401(k) tax credit - Businesses starting a 401(k) plan this year can claim a tax credit for
Tax Strategies In A Challenging Economy.Pptpspizzirri
This document discusses various tax strategies that the law firm Hall Booth Smith & Slover employs to help clients enhance cash flow and achieve permanent tax savings. Some strategies mentioned include taking advantage of tax credits, intellectual property planning, severance payments structuring, meals and entertainment deductions, and net operating loss carrybacks. The firm reviews clients' individual and business situations to determine the best strategies.
Payroll Webinar: W-2’s vs. 1099’s: Understanding Who Should be an Independent...Ascentis
This webinar examines how the common law rule is used to determine worker status and which three requirements are used to correctly classify a worker as an independent contractor along with the requirements for when a worker must be classified as an employee. Misclassifying employees and independent contractors are getting more costly by the day. With federal and state agencies joining forces to combat misclassification, fines and penalties have skyrocketed. And every day the misclassification continues the penalties mount up and up until this ticking time bomb finally explodes! Find out how to defuse that ticking bomb by joining renowned payroll expert Vicki M. Lambert, CPP for this information packed webinar!
The IRS issued a second notice regarding guidance on the Cadillac tax, set to take effect in 2018. The notice addresses issues such as who is liable for the tax, employer aggregation rules, determining the cost of coverage, and adjusting the dollar limits based on employee age and gender. The IRS is considering designating Form 720 as the method for paying the excise tax on a particular quarter of the calendar year. Comments on the notices are due by October 1, 2015, after which the IRS intends to issue proposed regulations.
The document summarizes potential accounting implications of the recent US tax reforms for companies with US operations preparing financial statements under IFRS. Key impacts include reducing the US corporate tax rate from 35% to 21% effective January 1, 2018, allowing 100% expensing of capital expenditures made between September 27, 2017 and December 31, 2022, and changes to how net operating losses can be carried forward. Companies will need to analyze the tax reform's effects in detail to determine the financial reporting impacts.
The Tennessee Department of Commerce and Insurance is adopting new unfair claims settlement practice rules to provide minimum standards for claim investigations and dispositions. The new rules add definitions, require prompt acknowledgment and responses to claims, and establish timelines for claim activities. They also outline standards for fair property, auto, and life insurance claim settlements. The new rules are based on National Association of Insurance Commissioners models and were supported by the insurance industry.
This letter from FedLoan Servicing informs the recipient, James A. Wellington, that:
1) He has been granted an unemployment deferment on multiple student loans from December 2012 through December 2013.
2) If interest is not paid on unsubsidized loans during the deferment period, it will be added to the principal balance, increasing the total cost of the loans.
3) Options for repayment plans, postponing payments through deferment or forbearance, and discharging loans in special circumstances are described.
A new federal law moves up the deadline for employers and small businesses to file W-2 and 1099 forms to January 31st. This new earlier deadline is intended to help the IRS identify fraudulent tax returns and refunds more quickly. As a result, some taxpayers claiming the Earned Income Tax Credit or Additional Child Tax Credit will have their refunds delayed until at least February 15th to allow for additional verification by the IRS. Employers are still required to provide copies of W-2 forms to employees by January 31st.
Payroll Webinar: Tax Levies and Creditor Garnishments: What Payroll Must Know...Ascentis
This webinar concentrates on processing garnishments in the payroll department other than child support. It covers the federal rules for creditor garnishments, the IRS rules for federal tax levies, the various aspects of state tax levies, the key points for processing state creditor garnishments, how to handle voluntary wage assignments such as payday loans and student loans. It includes best practices for reconciling and processing the garnishments in the payroll department. Sample memos for communicating with the employee concerning garnishments are included. The IRS Form 668-W is reviewed.
CARES Act - Key Takeaways for Healthcare OrganizationsCitrin Cooperman
The document summarizes key provisions of the CARES Act for healthcare organizations, including:
1) Medicare advance payments of up to 100% of prior payments, to be recouped starting 120 days later over a period of 210 days, with interest charged after 90 days for any remaining balance.
2) $100 billion in funding for healthcare providers through the Provider Relief Fund, with an initial $30 billion distributed based on 2019 Medicare fee-for-service billings.
3) Terms and conditions for the Provider Relief Fund distribution including certifying that funds will be used for COVID-19 related expenses and losses, not balance billing patients, and reporting requirements for recipients of over $150,000.
Maximizing Deductions in Light of the Section 162(m) GuidanceWinston & Strawn LLP
Winston & Strawn’s Employee Benefits & Executive Compensation Practice hosted “Maximizing Deductions in Light of the Section 162(m) Guidance” on September 6, 2018.
The IRS recently issued Notice 2018-68 providing much anticipated guidance on the key issues with respect to the Section 162(m) amendments added by the Tax Cuts and Jobs Act.
Partners Michael Melbinger, Nyron Persaud, and Ruth Wimer presented this webinar focused on understanding the impact of Notice 2018-68, including:
- Brief overview of the changes in Section 162(m) as a result of the Tax Act
- In depth discussion and analysis of Notice 2018-68: Covered employee, written binding contract, material modification
- “To do” list for maximizing deductions going forward
- Alternative compensation strategies
- Proxy Statement Reporting
- Accounting issues
Learn more here: https://www.winston.com/en/thought-leadership/maximizing-deduction-in-light-of-the-section-162m-guidance.html.
The IRS issued a notice confirming its delay of the employer pay-or-play excise tax until 2014 and provided additional clarification. With the delay, employers have time to focus on other Affordable Care Act compliance issues that were previously secondary to pay-or-play, such as updated HIPAA privacy policies and notices of exchange availability. Employers can also expect inquiries from employees and health insurance exchanges regarding their coverage to determine exchange subsidy eligibility. Willis will continue monitoring all provisions affecting employers and provide updates.
Health Reform Bulletin 132 | IRS Releases Finalized 2017 Forms and InstructionsCBIZ, Inc.
The 2017 Affordable Care Act reporting is upon us. The forms to be used, and the instructions for those forms, have just been released by the Internal Revenue Service. As a reminder, there are two annual reporting obligations imposed by IRC Section 6055 minimum essential coverage reporting, and by IRC Section 6056, employer shared responsibility reporting.
Health Reform - Additional IRS Approaches to the Cadillac Tax; Transitional R...CBIZ, Inc.
Guidance on:
1. Additional IRS Approaches to Cadillac Tax. On July 30, 2015, the IRS released a second pronouncement (IRS Notice 2015-52), which like the first, does not carry the weight of the law or regulation, but rather is an effort to test the waters to see how the law should be formulated. The new guidance expands the discussion with regard to identifying taxpayers liable for the excise tax, employer aggregation, allocation of the tax, payment of the applicable tax and determining the cost of applicable coverage.
2. Transitional Reinsurance Fee Process for 2015 Benefit Year. In preparation for reporting and paying the transitional reinsurance fees for the 2015 benefit year, the Centers for Medicare and Medicaid services released an overview of the process and procedures
3. State Innovation Waivers. The Affordable Care Act includes a provision that takes effect in 2017 which would allow a state to apply for an innovation waiver; pursuant to which the state could be relieved from certain aspects of the ACA.
4. Applicability of ACA’s Employer Shared Responsibility Provisions. On July 31, 2015, President Obama signed the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 (H.R. 3236); now Public Law 114-41). This law provides that for purposes of determining whether an employer is an applicable large employer with regard to employee enrollment in minimum essential health coverage under an eligible employer sponsored plan, individuals covered for medical care under TRICARE or the Veterans Administration are not counted. In addition, a recent lawsuit challenged the applicability of the ACA’s employer shared responsibility mandate to a Native American tribe.
Affordable Care Act and Employer Shared ResponsibilityJenny Villier
The document discusses the Employer Shared Responsibility provision under the Affordable Care Act that requires applicable employers to either offer affordable health insurance to employees or pay a penalty. It applies to employers with 50 or more full-time equivalent employees as of 2016, or 100 or more in 2015. Employers must offer coverage to 70% of employees in 2015 or 95% in 2016. If an employer does not comply and an employee receives a premium tax credit, the employer must pay $2,084-$3,126 per full-time employee beyond the thresholds. The penalties are meant to incentivize employers to provide coverage and lower insurance costs.
What Is Life After Coronavirus? Working Through The PPP Loan Forgiveness Appl...Rea & Associates
Doug Houser and Paul McEwan of the SBA & PPP Loan Task Force at Rea & Associates are back and, with the official release of the Paycheck Protection Program (PPP) Loan Forgiveness Application by the Small Business Administration, are ready to present a special 90-minute, interactive webcast that will help you make sense of the application while providing much-needed clarity on a variety of factors pertaining to PPP Loans.
Be sure to join Doug and Paul as they walk attendees through the formal application and attempt to explain the various complexities found within this document. Specifically, during this presentation, you will hear:
- Discussion about the most recent official guidance of the PPP Loan and how to navigate PPP Forgiveness.
- A complete review of the PPP Forgiveness Application.
- About PPP Forgiveness Application's Critical Issues/FAQ’s.
- How to protect your business through risk mitigation and building a file.
2016 Developments in Health and Welfare Plansbenefitexpress
This webinar discussed the most current developments in Health & Welfare plans.
For more information:
http://www.benefitexpress.info
http://www.twitter.com/benefitexpress
http://www.facebook.com/benefitexpress
Health Reform Bulletin: Finalized ACA Reporting Forms & Employer Appeals to M...CBIZ, Inc.
This bulletin details the release of a number of forms and compliance tools to assist employers subject to the Affordable Care Act’s (ACA) Shared Responsibility Requirements to comply with the law. Of particular note, the finalized version of the forms used to satisfy the IRC Section 6056 and 6055 reporting requirements, together with the related instructions, have been issued. While the forms released last week were for the 2014 calendar year reporting (the voluntary reporting year for all employers), it is presumed the mandatory forms to be released for 2015 reporting later this year will be quite similar to those just issued.
Health Care Reform Reporting Requirements for Employers and Health PlansThe Gardner Group
This Legislative Brief provides a summary of ACA's reporting requirements for employers and health plans. It summarizes Form W-2 reporting, applicable large employer health coverage reporting under Code section 6056, reporting of health coverage by health insurance issuers and sponsors of self-insured plans under Code section 6055, transparency in coverage reporting and quality of care reporting. It has been updated for final regulations on the section 6055 and 6056 reporting requirements.
Health Reform Bulletin 131 | The ACA Remains The Law of The LandCBIZ, Inc.
As has been covered extensively in the press, Congress went on its summer recess without repealing, replacing or modifying the Affordable Care Act. What this means for employers is that it is “business as usual”, including all reporting obligations, as more fully described below. So where does health care reform stand at this point? The answer to this question is far from clear.
Health Reform Bulletin 135 | Repeal of Individual Penalty Mandate, Review of ...CBIZ, Inc.
While there has been much energy over the past year focused on repealing, replacing, or repealing and replacing the Affordable Care Act (ACA), the bulk of the law remains in full force and effect.
This notwithstanding, Congress passed the “Tax Cuts and Jobs Act” (H.R. 1) on December 20, 2017; the President is expected to sign the bill into law. This tax reform bill repeals the individual penalty mandate. As background, beginning in 2014, all individuals residing in the United States are required to maintain a minimum level of health coverage, or be subject to a tax penalty. This tax penalty will be repealed, effective for tax years beginning January 1, 2019.
Affordable Care Act: Overview of New Requirements for 2015Sikich LLP
2015 is the first year employers can be fined for not complying with the reporting requirements set out by the Affordable Care Act (Obamacare). Get an overview of these new requirements in this eBook
The document discusses several aspects of healthcare reform in 2014 and beyond, including employer shared responsibility requirements under the employer mandate, waiting period rules and penalties, health insurance reporting requirements under sections 6055 and 6056, and fees such as the PCORI fee and reinsurance fee. It provides an overview and timeline of regulatory developments related to these provisions, including final and proposed regulations.
Health Reform Bulletin 125 | Updated Employer Shared Responsibility Guidance,...CBIZ, Inc.
The latest HRB has been released. Get updates on the following: 1) Updated Employer Shared Responsibility Guidance; 2) ACA Implementation Guidance; 3) Gender Identity Discrimination: Preliminary Injunction Issued; 4) Final Rules - Premium Tax Credit; and 5) 2018 Benefit and Payment Parameters.
The following Health Reform Checklist is intended to guide you through the general compliance requirements of
t he Affordable Care Act (ACA) as you prepare now for 2015 and beyond.
In general, these items apply to all employers.
Health Reform Bulletin – Completing the Transitional Reinsurance Fee Form CBIZ, Inc.
information on the release of Transitional Reinsurance reporting forms by the CMS Center for Consumer Information and Insurance Oversight (CCIIO):
1. Steps for completing the ACA Transitional Reinsurance Program Annual Enrollment Contribution Submission Form
2. Links to the User Manual, the companion to the reporting form
The Financial Accounting Standards Board (FASB) recently released Accounting Standards Update (ASU) 2016-09, Compensation (Topic 718): Improvements to Employee Share-Based Accounting. The ASU, which is a result, in part, of the post-implementation review of FASB Statement No. 123(R) Share Based Payment, is also part of the FASB’s continuing simplification project. The amendments are intended to simplify certain aspects of the accounting for share-based payments, including:
Accounting for income taxes upon settlement of the award;
Presentation of excess tax benefits;
Accounting for forfeitures; and
Withholding requirements and presentation of income taxes.
Additionally, the amendments provide for certain practical expedients for non-public entities.
1) Payroll departments play a key role in ensuring companies comply with the Affordable Care Act (ACA) by tracking employee hours and pay information needed to determine full-time status and affordable coverage.
2) Beginning in 2016, companies must file Form 1094-C and Form 1095-C for each full-time employee for the previous year, with penalties for noncompliance.
3) Accurate recordkeeping of hours, leaves, pay and other details is important for responding to notices from health insurance exchanges and the IRS regarding employee eligibility and employer penalties.
Fraser Trebilcock attorneys Beth Latchana and Mark Kellogg spoke this week at the Institute of Continuing Legal Education’s 27th Annual Tax Conference. In their overview of health care reform, they detailed most important aspects of the ACA, including: the health insurance marketplace, employer classification, the Pay or Play Mandate, reporting requirements, group health plan mandates, the individual insurance mandate, the Small Business Health Option Program, and the Small Business Health Care Affordability Tax Credits.
Navigate New Legislation: The Road Into 2017benefitexpress
As new regulations kick in for 2017 and ACA reporting season is coming to a close, review all recent legislative changes. This webinar focuses on what you need to know for your 2017 benefits strategy.
Learn about new legislation from DOL, HHS, IRS, and EEOC. ERISA attorney Larry Grudzien will cover all relevant rulings since his previous webinar and host an interactive Q&A with the audience.
Similar to Revised: IRS Updates Employer Mandate and issues Form Letter 226J. See Web Link. (20)
Enhancing Asset Quality: Strategies for Financial Institutionsshruti1menon2
Ensuring robust asset quality is not just a mere aspect but a critical cornerstone for the stability and success of financial institutions worldwide. It serves as the bedrock upon which profitability is built and investor confidence is sustained. Therefore, in this presentation, we delve into a comprehensive exploration of strategies that can aid financial institutions in achieving and maintaining superior asset quality.
Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Duba...mayaclinic18
Whatsapp (+971581248768) Buy Abortion Pills In Dubai/ Qatar/Kuwait/Doha/Abu Dhabi/Alain/RAK City/Satwa/Al Ain/Abortion Pills For Sale In Qatar, Doha. Abu az Zuluf. Abu Thaylah. Ad Dawhah al Jadidah. Al Arish, Al Bida ash Sharqiyah, Al Ghanim, Al Ghuwariyah, Qatari, Abu Dhabi, Dubai.. WHATSAPP +971)581248768 Abortion Pills / Cytotec Tablets Available in Dubai, Sharjah, Abudhabi, Ajman, Alain, Fujeira, Ras Al Khaima, Umm Al Quwain., UAE, buy cytotec in Dubai– Where I can buy abortion pills in Dubai,+971582071918where I can buy abortion pills in Abudhabi +971)581248768 , where I can buy abortion pills in Sharjah,+97158207191 8where I can buy abortion pills in Ajman, +971)581248768 where I can buy abortion pills in Umm al Quwain +971)581248768 , where I can buy abortion pills in Fujairah +971)581248768 , where I can buy abortion pills in Ras al Khaimah +971)581248768 , where I can buy abortion pills in Alain+971)581248768 , where I can buy abortion pills in UAE +971)581248768 we are providing cytotec 200mg abortion pill in dubai, uae.Medication abortion offers an alternative to Surgical Abortion for women in the early weeks of pregnancy. Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman Fujairah Ras Al Khaimah%^^%$Zone1:+971)581248768’][* Legit & Safe #Abortion #Pills #For #Sale In #Dubai Abu Dhabi Sharjah Deira Ajman
University of North Carolina at Charlotte degree offer diploma Transcripttscdzuip
办理美国UNCC毕业证书制作北卡大学夏洛特分校假文凭定制Q微168899991做UNCC留信网教留服认证海牙认证改UNCC成绩单GPA做UNCC假学位证假文凭高仿毕业证GRE代考如何申请北卡罗莱纳大学夏洛特分校University of North Carolina at Charlotte degree offer diploma Transcript
OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
Solution Manual For Financial Accounting, 8th Canadian Edition 2024, by Libby...Donc Test
Solution Manual For Financial Accounting, 8th Canadian Edition 2024, by Libby, Hodge, Verified Chapters 1 - 13, Complete Newest Version Solution Manual For Financial Accounting, 8th Canadian Edition by Libby, Hodge, Verified Chapters 1 - 13, Complete Newest Version Solution Manual For Financial Accounting 8th Canadian Edition Pdf Chapters Download Stuvia Solution Manual For Financial Accounting 8th Canadian Edition Ebook Download Stuvia Solution Manual For Financial Accounting 8th Canadian Edition Pdf Solution Manual For Financial Accounting 8th Canadian Edition Pdf Download Stuvia Financial Accounting 8th Canadian Edition Pdf Chapters Download Stuvia Financial Accounting 8th Canadian Edition Ebook Download Stuvia Financial Accounting 8th Canadian Edition Pdf Financial Accounting 8th Canadian Edition Pdf Download Stuvia
Vicinity Jobs’ data includes more than three million 2023 OJPs and thousands of skills. Most skills appear in less than 0.02% of job postings, so most postings rely on a small subset of commonly used terms, like teamwork.
Laura Adkins-Hackett, Economist, LMIC, and Sukriti Trehan, Data Scientist, LMIC, presented their research exploring trends in the skills listed in OJPs to develop a deeper understanding of in-demand skills. This research project uses pointwise mutual information and other methods to extract more information about common skills from the relationships between skills, occupations and regions.
The Universal Account Number (UAN) by EPFO centralizes multiple PF accounts, simplifying management for Indian employees. It streamlines PF transfers, withdrawals, and KYC updates, providing transparency and reducing employer dependency. Despite challenges like digital literacy and internet access, UAN is vital for financial empowerment and efficient provident fund management in today's digital age.
Economic Risk Factor Update: June 2024 [SlideShare]Commonwealth
May’s reports showed signs of continued economic growth, said Sam Millette, director, fixed income, in his latest Economic Risk Factor Update.
For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
Economic Risk Factor Update: June 2024 [SlideShare]
Revised: IRS Updates Employer Mandate and issues Form Letter 226J. See Web Link.
1. November 9, 2017
Client Alert
For more information: www.marbarlaw.com Page 1 of 6
IRS Updates Employer Mandate FAQs, Indicates that Penalty Letters are Imminent; Issues
Form Letter 226J
This is an update of our November 6, 2017 Alert to include issuance of Form Letter 226J.
The Internal Revenue Service (IRS) has updated its list of frequently asked questions (FAQs)
on the Affordable Care Act’s employer shared responsibility provisions – also known as the
“pay or play” mandate. In particular, questions 55 through 58 provide guidance for
employers who may be subject to shared responsibility payments. The FAQs indicate that
the IRS will begin sending penalty letters to applicable large employers (ALEs) that owe
penalties for calendar year 2015 “in late 2017.” Around this time last year, the IRS had
indicated that penalty letters for 2015 would be coming “in early 2017;” however, those
letters never materialized. Based on the latest update to its FAQs, it appears that the IRS
has worked out the kinks in its systems and is prepared to begin sending penalty letters.
The general procedures the IRS will use to propose and assess the employer shared
responsibility payment are described in Letter 226J, which is the initial proposal of the
penalty that may be owed. The IRS recently published Understanding your Letter 226J for
ALEs to understand what they need to do and what they may want to do if they receive
Letter 226J.
Background
Starting in 2015, the ACA requires ALEs to either “play” by offering affordable health
coverage to their full-time employees, or “pay” a penalty if the employer fails to provide
affordable health coverage and at least one full-time employee receives a premium tax
credit to help purchase coverage through the Health Insurance Marketplace. ALEs are
generally those with 50 or more full-time employees, including full-time equivalent
employees. Transitional relief was available for 2015 (and, for non-calendar year plans, any
portion of the 2015 plan year that fell in 2016) for ALEs with fewer than 100 full-time
employees that satisfied the conditions of such transitional relief.
In general, there are two potential penalties (both non-deductible for tax purposes) that
could be imposed on an ALE for failure to satisfy the mandate. The first penalty, known as
the “no coverage” penalty, is based on whether an ALE fails to offer group health plan
2. Client Alert
Page 2 of 6
coverage to at least 95% (70% during 2015 plus, for non-calendar year plans, any calendar
months of 2016 that fell within the 2015 plan year) of its full-time employees. In this case,
the annual penalty is $2,000 per full-time employee minus 30 (minus 80 for 2015, plus any
calendar months of 2016 that fell within the 2015 plan year) full-time employees if at least
one employee receives a premium tax credit for Marketplace coverage. The second penalty,
known as the “unaffordability” penalty, applies when an employer offers coverage that fails
to meet certain affordability and minimum value requirements. In that case, the annual
penalty is $3,000 for each full-time employee who receives a premium tax credit for
Marketplace coverage, but no more than what the “no coverage” penalty would be if it
applied. As noted above, several types of transition relief applied for 2015 (for non-
calendar-year plans, some aspects of the relief continued for months of the 2015 plan year
that fell in the 2016 calendar year). This transition relief delayed application of the penalties
for certain ALE members and reduced the penalty amount for others. This transition relief
has now expired.
The annual penalties are prorated on a monthly basis and are indexed each year for inflation,
as shown in the following table:
Penalty Type “No Coverage” “Unaffordability”
Description
Coverage not offered to 95%**
of full-time employees
Coverage offered, but
unaffordable or is not minimum
value
2018 $2,320 $3,480
2017 $2,260 $3,390
2016 $2,160 $3,240
2015 $2,080 $3,120
2014* $2,000 $3,000
*No employer shared responsibility penalties will be assessed for 2014.
** 70% during 2015 (plus, for non-calendar year plans, any calendar months of 2016 that fell within the 2015
plan year)
The IRS’ Penalty Process
The FAQs indicate that the IRS will use Letter 226-J to propose and assess penalties. Letter
226J will be issued if the IRS determines that, for at least one month in the year, at least one
of the ALE’s full-time employees was enrolled in subsidized coverage through the
Marketplace and the ALE did not qualify for an affordability safe harbor (or other relief for
3. Client Alert
Page 3 of 6
the employee). The determination of whether an ALE may be liable for a penalty and the
amount of the proposed penalty in Letter 226J are based on information from Forms 1094-
C and 1095-C filed by the ALE and the individual income tax returns filed by the ALE’s
employees. The letter will include, among other things, the following:
a brief explanation of the pay-or-play provisions;
a table itemizing the proposed penalty by month and whether the liability is under
the “no coverage” provision, the “unaffordability” provision or neither;
an employer shared responsibility response form (Form 14764 – ESRP Response);
a list of full-time employees who received subsidized Marketplace coverage each
month (Form 14765 – Employee Premium Tax Credit List) and for whom the ALE did
not qualify for an affordability safe harbor or other relief;
a description of the actions the ALE should take if it agrees or disagrees with the
proposed payment amount in Letter 226J; and
a description of the actions the IRS will take if the ALE does not respond timely.
The response to Letter 226J will be due by the response date shown on that letter, which
generally will be 30 days from the date of Letter 226J. The letter will contain the name and
contact information of a specific IRS employee that the ALE should contact if it has questions
about the letter.
A copy of Letter 226J can be found here: https://www.irs.gov/pub/notices/ltr226j.pdf.
Employer Response
ALEs will have an opportunity to contest any proposed penalty notices. ALEs that receive a
Letter 226J may respond to the IRS about the proposed payment, including requesting a pre-
assessment conference with the IRS Office of Appeals. The letter will provide instructions
for how the ALE should respond in writing, either agreeing with the proposed penalty
amount or disagreeing with all or a portion of it. ALEs may allow someone to contact the
IRS on their behalf so long as they send the IRS a Form 2848 (Power of Attorney and
Declaration of Representative) that states specifically the year and that it is for the Section
4980H Shared Responsibility Payment.
If an ALE agrees with the penalty determination, it must complete and return a Form 14764,
ESRP Response, that is enclosed with the letter, and include full payment by check or money
order for the penalty amount assessed (or, if enrolled in the Electronic Federal Tax Payment
System (EFTPS), pay electronically).
4. Client Alert
Page 4 of 6
If an ALE disagrees with the penalty determination, the enclosed Form 14764, ESRP
Response, will also include a Form 14764 to send to the IRS and it will need to include a
signed statement explaining the basis for the disagreement. The ALE may include any
documentation (e.g., offer of coverage records) with the supporting statement. The
statement must also include what changes the ALE would like to make to the Forms 1094-C
and/or 1095-C on the enclosed “Employee PTC Listing.” However, the instructions state that
an ALE should not file a corrected Form 1094-C or 1095-C. The Letter 226J includes
additional, specific instructions on making changes to the Employee PTC Listing.
If the ALE responds to Letter 226J, the IRS will acknowledge the ALE’s response with one of
five versions of Letter 227 (which, in general, acknowledge the ALE’s response and describe
further actions the ALE may need to take). If, after receipt of Letter 227, the ALE disagrees
with the proposed or revised employer shared responsibility payment amount, it may
request a pre-assessment conference with the IRS Office of Appeals. The ALE should follow
the instructions provided in Letter 227 and Publication 5 for requesting a conference with
the IRS Office of Appeals. A conference should be requested in writing by the response date
shown on Letter 227, which generally will be 30 days from the date of Letter 227.
If the ALE does not respond to either Letter 226J or Letter 227, the IRS will assess the amount
of the proposed penalty and issue a notice and demand for payment (Notice CP 220J).
Notice CP 220J will include a summary of the ALE’s payment responsibility and will reflect
payments made, credits applied, and the balance due, if any. The notice will instruct the
ALE how to make payment, if any. ALEs will not be required to include the employer shared
responsibility payment on any tax return that they file or to make payment before notice
and demand for payment. ALEs may have the ability to make installment payments, as
described in Publication 594.
Next Steps
There were numerous legislative efforts by the Trump administration earlier this year to
repeal and replace the ACA, including retroactively eliminating the individual and employer
shared responsibility mandates. Recently, there have been discussions that Republicans
may again try to repeal those mandates as part of their tax reform bill. However, to date,
no such repeal bills have passed, and the most recent proposed tax reform bill does not
include a repeal of the mandates. In the absence of a repeal, employers should be prepared
to respond to any IRS penalty letters and continue to prepare for 2017 reporting (in 2018).
The IRS will be determining penalty responsibility based on an employer’s ACA reporting
(Forms 1094-C and 1095-C), along with information regarding an individual’s receipt of a
5. Client Alert
Page 5 of 6
premium tax credit. ALEs who have been offering affordable, minimum value coverage to
full-time employees should ensure that they have all information necessary to appeal any
proposed penalty assessments, including payroll records and documentation regarding how
offers of coverage are made. While the IRS FAQs indicate that the IRS plans to issue Letter
226J for the 2015 calendar year (which generally applied to ALEs with 100 or more full-time
employees), it is a good time for ALEs in later years to start reviewing and gathering
information that they may need to respond to Letter 226J as well.
Employers that receive Letter 226J should review it carefully and consider whether there is
a basis to pursue an appeal, including whether the employee was full-time for ACA purposes
in each month for which a penalty is assessed. For example, employers may need to
demonstrate to the IRS that they were using permissible measurement and stability periods
and that the employee in question qualified as a “variable hour employee,” if the employer
is claiming that an employee who worked 130 hours in a particular month was not full-time
for ACA purposes. Employers who receive Letter 226J should be mindful of the response
deadline, which will generally be 30 days from the issuance date appearing on the letter,
and should consider taking steps now (such as working with human resources, legal,
benefits, payroll, and finance departments as well as outside vendors housing your ACA
data) to set up a process to ensure timely review and response to any Letter 226J.
Depending on mailing delays and internal routing, an employer may have a very short
timeframe before the due date to respond, so advanced planning is critical. In anticipation
of receipt of any Letter 226J and in light of the relatively short time frame in which to
respond, employers may want to consider securing a Form 2848 (Power of Attorney and
Declaration of Representative) now to allow someone, such as employee benefits counsel,
to contact the IRS on their behalf.
Employers that receive subsidy notification letters from the Marketplace during the year
should consider appealing them when there is a basis to do so. In many cases, employers
receive Marketplace subsidy letters for individuals who are not full-time for ACA purposes,
and thus there is no basis for an appeal. In other words, an employer would not appeal a
premium subsidy notice for a part-time employee to whom the employer did not offer
coverage (that person would be a prime candidate for subsidized coverage).
Employers should also be reminded that the ACA Section 1558 prohibits retaliation against
employees who receive premium tax credits. Among other things, employers are prohibited
from discharging or discriminating against an employee because the employee received a
premium tax credit. Employers violating Section 1558 may be required to reinstate the
employee to his or her former position (and provide back pay) and may be subject to