X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
1095 Tax Form Common issues that could trigger a 226J letter include failure to select MEC indicator and a disconnect between the payroll vendor and benefits professional. (Photo: Shutterstock)

The Affordable Care Act (ACA) contains a requirement called the Employer Shared Responsibility Provisions (ESRP). This requirement is also referred to as the Employer Mandate. Under this mandate, Applicable Large Employers (ALEs) that have 50 or more employees (full-time or full-time equivalents) are required to offer coverage to the employee and children dependents. Failure to offer coverage can result in penalties.

Many ALEs have received Letter 226J from the IRS that indicates their proposed assessment of a penalty under the Employer Shared Responsibility Provision (ESRP) of Section 4980H of the Patient Protection and Affordable Care Act (ACA). These penalty calculations are based on data provided by employers to the IRS on Forms 1094 and 1095.

Complete your profile to continue reading and get FREE access to BenefitsPRO.com, part of your ALM digital membership.

Your access to unlimited BenefitsPRO.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical BenefitsPRO.com information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com

Already have an account?

 

BenefitsPRO

Join BenefitsPRO

Don’t miss crucial news and insights you need to navigate the shifting employee benefits industry. Join BenefitsPRO.com now!

  • Unlimited access to BenefitsPRO.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
  • Exclusive discounts on BenefitsPRO.com and ALM events.

Already have an account? Sign In Now
Join BenefitsPRO
Live Chat

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.