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How to Handle an ACA Penalty Letter

The IRS has begun issuing letters to employers who are not offering health coverage to full-time employees. Under the Affordable Care Act’s (ACA) employer shared responsibility rule, applicable large employers must provide affordable health coverage to full-time employees or face stiff penalties.

There are two key provisions to the ACA’s employer shared responsibility rule that can trigger thousands of dollars in penalties:

  1. Full-time employees must be provided health coverage.
  2. That coverage must be adequate and affordable, as specified by the law.

Penalty amounts will depend on the year. Not offering health coverage could cost you between $2,080 and $2,320 per full-time employee. If coverage is unaffordable or inadequate, penalties range from $3,120 to $3,480 per affected employee.

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