IRS initiates letters over ACA's employer mandate: 4 things to know

The Internal Revenue Service is seeking payments from certain employers that did not provide required insurance coverage to employees per the ACA, according to a Lexology report.

Here are four things to know.

1. The payments are part of the ACA's employer mandate. The mandate requires applicable large employers to offer "affordable" and "minimum value" essential coverage to their full-time employees as well as their dependents, according to the IRS. The mandate applies to employers with at least 50 full-time employees, on average, including full-time-equivalent employees, during the prior calendar year. ALEs that don't comply owe the IRS an employer shared responsibility payment.

2. The IRS has started sending noncompliance letters to certain employers seeking those payments, according to Lexology.

3. The publication reports an employer may respond to and dispute the letter.

4. The IRS efforts come as House Republicans consider repealing or delaying the ACA's employer mandate.

 

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