IRS Begins Enforcement of ACA Employer Mandate

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The Internal Revenue Service (IRS) has begun enforcing the Affordable Care Act (ACA) Employer Shared Responsibility provisions (commonly known as the "Employer Mandate"). Notices have been mailed informing employers of potential liability for the 2015 reporting year.

The ACA's Employer Mandate requires that certain "applicable large employers" offer minimum essential health coverage that is affordable and provides minimum value to full-time employees (and their dependents). Generally, "applicable large employers" are employers with 50 or more full-time or full-time equivalent employees, although a 100-employee standard, rather than a 50-employee standard, was applied for 2015. Applicable large employers must also report certain health coverage information to the IRS and plan participants annually on Forms 1094 and 1095. Employers who do not offer compliant coverage pay penalties. 

For more information, see the IRS's Questions and Answers on Employer Shared Responsibility Provisions Under the ACA.