Posts Tagged: Employer penalty

Employer Penalty Solution Debunked

in Affordable Care Act

There has been some talk in practitioner circles as well as national newspapers about strategies to get around the employer penalty rules. These strategies are the result of some very tortured and winding analysis under Treasury’s ACA guidance to date. As you know, I’m all about legal maneuvering, but all the twists and turns are too involved to discuss here. But, most of the strategies involve some type of preventive care, mini-med or HRA offering to get around the 4980H (a) penalty, where minimum value and affordability aren’t required. Then, because Treasury’s minimum essential coverage rules are such a low… Continue Reading

Employer Penalty Comments

in Affordable Care Act

As many of you know, the employer penalty proposed regulations require crediting of hours of service for periods during which the employee is not actively at work. Currently, the proposed regulations do not contain any maximum time limit or cap on this credit, which could lead to situations where employers must credit hours of service for years or decades after an employee has stopped actively working. Today we filed comments with the IRS that will hopefully encourage the Service to place a cap on this crediting rule. Our comments are located here.

Employer Penalty Guidance

in Affordable Care Act

Late Friday afternoon, the IRS released proposed regulations on the calculation and determination of the employer penalty provisions of the Affordable Care Act. In general, these provisions impose a monetary penalty on certain employers who do not provide a minimum level of health coverage to their full-time employees. The proposed regulations are lengthy, but include a number of interesting surprises, including the following: – The employer penalty provisions require coverage for both full-time employees and their dependents (children up to age 26, but not spouses). – All employers in a controlled group are aggregated together to determine whether an employer… Continue Reading