However, the IRS does subtract 30 employees.
For example, if a company has 1000 full time employees, the IRS would use 970 as the number of employees to assess the penalties. It must be noted that going forward the $2000 penalty will be adjusted each year for inflation. In 2016 this penalty will be assessed $2160.00 per employee.
Another major change is dealing with Safe Harbor Percentages.
Below we can see the increasing changes with respect to the filing years to come:
|Safe Harbor Percentages
Even though these changes are less than a percent, they are tied to offering minimum essential coverage, which in turn is a driving factor for penalty assessment.
Both of these examples show that for the 2016 filing season the IRS will not hold anything back when it comes to assessing penalties. Looking towards the future, employers must remain diligent and proactive in order to obtain correct information from both the employees and the IRS.
Many employers have underestimated the complexity of ACA filing for the first year. ACA filing is not a “set it and forget it” situation. It requires much interaction on the employer’s part. Because the Affordable Care Act creates such a dynamic environment, it is best practice to monitor the IRS and their communication channels. By monitoring the IRS and keeping a strong foothold on the current ACA regulations, the ambiguous landscape that is ACA will gradually become clearer.
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