Updates Also Include Payment Information
The Internal Revenue Service has updated its Q&As on the Affordable Care Act's employer shared responsibility (pay or play) requirements, including the penalty amounts that will apply for 2020. Each year, penalty amounts are increased based on the premium adjustment percentage for the year.
For 2020, the adjusted penalty amounts are $2,570 (for employers not offering coverage) and $3,860 (for employers offering coverage that is not affordable or does not provide minimum value). The updated Q&As also address the following topics on making a payment:
- Employer responses to Letter 226J (the letter the IRS uses to propose and assess payments);
- How to make a payment;
- IRS notification to employers of potential penalty liability.
Click here to view the Q&As in their entirety.