The hits just keep on coming. Latest news from the IRS this week is concerning ACA enforcement even though Washington is busy trying to dismantle the machine. The IRS warns us that although the employee mandate is not being enforced in 2018 for 2017 violations, the employer mandate is still in force and is actively being enforce until 2019 tax year. Currently the Service has about 32,000 violation notices for 2017 tax year sent out and in various stages of collection enforcement. Some assessments are over $1.2 million! This applies to companies with over 50 employees.
The penalties for not offering an ACA compliant plan, resulting in employees applying and being approved by the Marketplace, are serious indeed. Employees who have received subsidies under ACA through Marketplace vendors, can cost your company as much $2,000 in fines, per employee. Contact your accountant to make sure you have filled out your ACA forms and make sure you don’t have any employees currently enrolled in the Marketplace, because they thought it was a choice offered to them.