Revised HCTT-2016-32: Six Things to Know about the Employer Shared Responsibility Provisions
Internal Revenue Service (IRS) sent this bulletin at 03/23/2016 10:19 AM EDT
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Issue Number: Revised HCTT-2016-32Inside This IssueUPDATE: March 23, 2016: Item #4 was updated to indicate that you are subject to the payment if at least one full-time employee receives the premium tax credit and any one of these conditions apply. Six Things to Know about the Employer Shared Responsibility Provisions The health care law includes the employer shared responsibility provisions, which require applicable large employers to offer health coverage to full-time employees and their dependents. Those that do not offer coverage might be subject to the employer shared responsibility payment. Here are six facts about these provisions. 1. These provisions apply to applicable large employers, which includes tax-exempt and federal, state, local and Indian tribal government employers. You’re an applicable large employer if you have 50 or more full-time employees, including full-time equivalents. 2. If you have fewer than 50 full-time employees, including full-time equivalents, you are not an applicable large employer and are generally not subject to these provisions. However, you are subject to the rules for large employers if you have fewer than 50 employees, but are a member of an ownership group that has 50 or more full-time equivalent employees, 3. Under certain conditions relating to the employer’s maintenance of workforce and pre-existing health coverage, an employer won’t be assessed a payment for 2015. This transition relief is available for tax year 2015 for certain ALEs who have fewer than 100 full-time employees, including full-time equivalents. . 4. You are subject to the payment if at least one full-time employee receives the premium tax credit and any one of these conditions apply. Your organization:
5. You do not report or include an employer shared responsibility payment with any information return you file. 6. The IRS will contact you about your potential shared responsibility payment amount. You’ll have an opportunity to respond before the IRS assesses any liability or issues a notice and demand for payment. Thank you for subscribing to IRS Tax Tips, an IRS e-mail service. For more information on federal taxes please visit IRS.gov. This message was distributed automatically from the IRS Tax Tips mailing list. Please Do Not Reply To This Message. |