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IRS to Begin Enforcing 4980H Penalties on Large Employers Before End of 2017

On November 2, 2017, the IRS issued guidance regarding the enforcement of Employer Shared Responsibility payments, otherwise known as the Section 4980H penalty. Questions 55-58 of the IRS Questions and Answers on Employer Shared Responsibility Provisions Under the Affordable Care Act indicate that the IRS is moving forward with assessing penalties on Applicable Large Employers […]

Former Associate

Full Steam Ahead: IRS Moves Forward to Collect Affordable Care Act Penalties

As efforts to reform the Affordable Care Act (the “ACA”) stall in Congress, a recent government report suggests that the Internal Revenue Service is preparing to identify and collect employer shared responsibility penalties. The Treasury Inspector General for Tax Administration issued the report, Affordable Care Act: Assessment of Efforts to Implement the Employer Shared Responsibility […]

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ACA Information Reporting Penalties Have Been Increased

Code Sections 6055 and 6056 require large employers and all employers (even small employers) sponsoring self-funded health plans to file information returns with the IRS and furnish statements to applicable employees concerning the health coverage offered or provided to these employees and their dependents.  This information reporting begins in 2016 with respect to 2015 coverage.  […]

Former Associate

Health Care Reform 2015 – An Update

2015 is a significant year for health care reform because the large employer shared responsibility penalties under Internal Revenue Code Section 4980H take effect for most large employers.  See our SW Benefits Update, “Health Care Reform’s Employer Shared Responsibility Penalties:  A Checklist for Employers,” for a detailed explanation of the large employer penalties. Many people are under […]


Final Regs on Health Care Reform Large Employer Penalties May Help Employers Who Hire Employees From Staffing Firms

As explained in my Checklist for Employers, a large employer will have to pay a subsection (a) penalty for any month if it does not offer “minimum essential coverage” (“MEC”) to substantially all (i.e., 70% for 2015 and 95% for future years) of its full-time employees and their dependents if one or more full-time employees […]


Do you know who is in your controlled group? Employers need to know for purposes of the large employer shared responsibility penalties

Most employee benefit plans are subject to nondiscrimination rules.  In order to prevent employers from breaking apart companies in order to avoid these nondiscrimination rules, most employee benefit plans, in performing nondiscrimination testing, must take into account related businesses (i.e., controlled groups and affiliated service groups). I’ve been blogging recently about the large employer shared […]


Final Regs on Health Care Reform Large Employer Penalties Include New Transition Relief Easing Employers Into Compliance

The IRS issued final regulations implementing the employer shared responsibility penalties on February 12, 2014.  As promised in an earlier post, I have updated our Checklist for Employers to reflect the final regulations.  Although the Checklist explains many of the transition rules, below is a summary of what I think are two of the most […]


IRS Finally Issues Final Regs on Health Care Reform Large Employer Penalties — Employers May Want to Start Compliance Efforts Now

In July 2013, Treasury announced that the large employer shared responsibility penalties would not take effect until 2015.  This one-year delay was welcome news, but it unfortunately resulted in many employers pushing this issue to the back burner. With the IRS just having published final regulations on February 12, 2014, now is a great time […]

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