Key provisions of the notice include:
- Confirmation of adjusted employer shared responsibility penalty amounts. For 2015, the adjusted penalty amounts are $2,080 and $3,120. For 2016, the adjusted penalty amounts are $2,160 and $3,240. The IRS anticipates that adjustments for future years will be posted on the IRS.gov website.
- Application of the adjusted affordability percentage to the affordability safe harbors under the employer shared responsibility rules. The adjusted amounts are 9.56 percent for 2015 and 9.66 percent for 2016.
- Clarification on how the employee contribution for coverage is calculated. The IRS has provided information on how the cost is affected by HRA and flex contributions, opt-out payments and Service Contract Act/Davis-Bacon Act fringe benefits.
Read More >>