ACA Information Reporting Penalties Increased for Returns Filed in 2025
Now that the reporting deadlines for the 2023 calendar year, which took place in 2024, have passed, it
is time to focus on next year’s filing deadlines and penalties. IRS Revenue Procedure 2023-34 includes
the updated penalty amounts that may apply to reporting entities that fail to comply with the Affordable Care Act’s (ACA) requirements under Internal Revenue Code Sections 6055 and 6056.
Click here to learn more and download the latest ACA Compliance Bulletin.
ACA Compliance Overview – Electronic Filing of ACA Returns
The Affordable Care Act (ACA) created reporting requirements under Internal Revenue Code (Code) Sections 6055 and 6056. Under these rules, certain employers must provide information to the IRS about the health plan coverage they offer (or do not offer) to their employees.
Under the original rules, any reporting entity that was required to file at least 250 individual statements under Sections 6055 or 6056 had to file electronically. However, in 2023 the IRS released a final rule implementing a law change by the Taxpayer First Act of 2019, which lowers the 250-return
threshold for mandatory electronic reporting to 10 returns. As a result, most reporting entities are now required to complete their ACA reporting electronically.
Click here to learn more and download the latest ACA Compliance Bulletin.
ACA Compliance Overview – HHS’ FAQs on Section 1557 Nondiscrimination Final Rule
Section 1557 of the Affordable Care Act (ACA) prohibits discrimination based on race, color, national origin, sex, age or disability in certain health programs and activities. Section 1557 has been in effect since its enactment in 2010, with the U.S. Department of Health and Human Services’ (HHS) Office of Civil Rights (OCR) enforcing the provision.
This Compliance Overview provides HHS’ Frequently Asked Questions (FAQs) on the final rule, which becomes effective July 5, 2024.
Click here to learn more and download the latest ACA Compliance Bulletin.
Affordability Percentages Will Decrease for 2022
For plan years beginning in 2022, the ACA’s affordability contribution percentages are decreased significantly to:
• 9.61% under the pay or play rules
• 9.61% under the premium tax credit eligibility rules
• 8.09% under an exemption from the individual mandate
Click here to learn more and download the latest ACA Compliance Bulletin.
Affordability Percentages Will Increase for 2021
Highlights
For plan years beginning in 2021, the ACA’s affordability contribution percentages are increased slightly to:
• 9.83% under the pay or play rules
• 9.83% under the premium tax credit eligibility rules
• 8.27% under an exemption from the individual mandate
Click here to read and download the latest ACA Compliance Bulletin.
Pay or Play Penalty Increase
On Sept. 11, 2019, the IRS updated their Questions and Answers (Q&As) on the employer shared responsibility rules under the Affordable Care Act (ACA), to include adjusted penalty amounts for 2019 and 2020. According to the FAQs, the penalty amounts will be increased as follows.
Client and Employee Resources
The more your employees understand your benefit plans the more they become educated, empowered consumers. The programs you provide will also gain an enhanced value.
As your strategic partners in employee benefits, we can provide multiple avenues of ongoing support, including:
- Employee Meetings (English and Spanish)
- Webcasts
- Payroll Stuffers
- Poster Campaigns
- Newsletters
Carrier Directories
E-Verify is a web-based system that allows enrolled employers to confirm the eligibility of their employees to work in the United States. Click the image below to begin.
