PORTAGE, Mich., Sept. 9, 2019 /PRNewswire/ -- It is well-known that the Affordable Care Act (ACA) imposes strict penalties on employers who fail to comply with its requirements. Annual penalties for incorrect or late filing and plan compliance can be devastating, and the penalties are increasing. With higher penalties and aggressive IRS enforcement of ACA mandates in 2019, it is more important than ever for employers to review their ACA responsibilities.
The Cost of Noncompliance
Employers are facing increased penalties for ACA noncompliance in 2019.
These penalties can easily surpass $100,000 in total, making it essential to review a plan's compliance with the ACA. Other penalties, including failure-to-file and failure-to-furnish, are expected to increase from $260 to $270 per return.
The IRS has also begun aggressive enforcement of the ACA, sending out Letter 226J penalty notices for noncompliance with the Employer Shared Responsibility Payment (ESRP) provisions 4980H(a & b) during the 2017 tax year. This comes shortly after the IRS sent out Letter 226J penalty notices for the 2016 tax year, a clear indication the IRS is intensifying their enforcement of ACA compliance.
As one of the first ACA reporting vendors in the nation, BASIC is a Technology Driven HR Compliance Company focused on delivering administrative and technology solutions to assist Human Resource Departments throughout the United States. BASIC's ACA Elevate service offers filing solutions for employers of all sizes, with access to a variety of ACA training materials, dedicated compliance specialists, and a 24/7 secure online ACA portal. Using a trusted solution like BASIC's ACA Elevate is the best way for employers to protect themselves from drastic ACA noncompliance penalties in 2019 and beyond.
For more information about BASIC:
Visit us atwww.basiconline.com.
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