The 2015 tax year is coming to a close, which means that 2015 tax penalties for ACA noncompliance are likely top of mind for many employers right now. While the employer mandate has received much of the press and attention, there are also many more ACA mandates that require action on the part of all organizations that provide group health coverage(not just those with 100+ employees).
Specifically, in addition to the “pay or play” employer mandate, there are more than a dozen directives or prohibitions laid out in the ACA that employers must comply with in 2015 in order to avoid a $100/day excise tax (per affected employee) and possible ERISA penalties. These include mandates around: dependent coverage; lifetime and cost-sharing limits; preexisting conditions; waiting periods; preventative care; nondiscrimination; patient protections; cafeteria plans; and health reimbursement arrangements (HRAs).
Luckily, this first year of reporting and filing means that the IRS has implemented transition and penalty relief for some mandates for those organizations than can demonstrate attempts to comply in good faith. However, while good faith rules apply, it is still imperative to understand all of the details and nuances of the ACA requirements to ensure your organization secures and maintains compliance moving into 2016.
To find out more about each of the above mandates and possible penalties,
as well as key terms and deadlines related to the ACA, download
The Nonstop Guide to ACA Penalities for the 2015 Tax Year.
The information and materials herein are provided for general information purposes only and are not intended to constitute legal or other advice or opinions on any specific matters and are not intended to replace the advice of a qualified attorney, plan provider or other professional advisor. This information has been taken from sources believed to be reliable, but there is no guarantee as to its accuracy. In accordance with IRS Circular 230, this communication is not intended or written to be used, and cannot be used as or considered a ‘covered opinion’ or other written tax advice and should not be relied upon for any purpose other than its intended purpose