The IRS has recently posted an announcement on their website, saying all mailing and correspondence including responding to Employer Shared Responsibilty Payment (ESRP) was postponed until after July 15th, 2020. Translation: BenefitScape recommends that Employers should begin to gear up for IRS ACA Penalty Notices.
Who is affected?
Under the ACA Employer Mandate, Applicable Large Employers (ALEs) must either offer Affordable Minimum Essential Coverage (MEC) that meets Minimum Value to their Full Time employees and their dependents, or make an ESRP to the IRS. These ESRPs are delivered in the form of IRS Notices sent to the Employer.
Given the current state of the COVID-19 pandemic, are penalties on hold?
Nope! Now is a critical time to get in compliance with the ACA, the most important health care legislation in generations. The IRS Office of the Chief Counsel recently issued new field advice making it clear that the the assessments of an ESRP under Internal Revenue Code Section §4980H will stay in play. This means current and past non-compliance with the ACA Reporting requirements will continue to be a liability.
I've received an ESRP notice: What do I do?
Reach out! If you've received an ESRP notice and need assistance with next steps, we're always here to help. Our dedicated ACA ESRP Consulting team will work with you to review your data and can respond to the IRS on your behalf.
BenefitScape recommends taking the summer to review your prior year filings and take action before it's too late! Contact us at (508) 655-3307 or email firstname.lastname@example.org if you have any questions.