Why should your organization care about IRS Letter 226J? Well, it could propose millions of dollars in ACA penalties against your organization.
The Letter 226J notices are being sent to certain larger employers the IRS believes have failed to comply with the requirements of the Employer Mandate under the Affordable Care Act (ACA) for the 2015 tax year. To date, the IRS has issued more than 30,000 of these notices proposing penalty assessments of over $4.4 billion. A report from the Congressional Budget Office has stated these penalty assessments could total up to $12 billion in 2018.
Under the Employer Mandate, Applicable Large Employers (ALEs), organizations with 50 or more full-time employees and full-time equivalent employees, are required to offer minimum essential coverage to at least 95% of their full-time workforce (and their dependents) whereby such coverage meets minimum value and is affordable for the employee or be subject to IRS 4980H penalties.
Read more at The ACA Times