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Pay or Play Penalties Increase

penalty increase

1 minute read

Note: Last week’s article confirmed that pay or play penalties still continue to apply to applicable large employers. This week’s legislative alert discusses increased penalty amounts. We trust you are in compliance already.

The IRS has updated their Questions and Answers regarding the employer shared responsibility rules (pay or play) under the Affordable Care Act. It includes adjusted penalty amounts for 2019 and 2020.

The amounts will be increased as follows:

  • For the calendar year 2019, the adjusted $2,000 amount is $2,500 and the adjusted $3,000 amount is $3,750.
  • For the calendar year 2020, the adjusted $2,000 amount is $2,570 and the adjusted $3,000 amount is $3,860.

Employers that are subject to these rules should make sure they are offering the required coverage or they may have increased penalties for each year in which they fail to comply.

Download the bulletin for more details.

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Bill Enright

Bill Enright

Bill Enright is Director of Consulting Services at National Insurance Services (NIS). He’s responsible for the management, fulfillment, and strategic direction of the full benefit consulting clients and services and the professional development of NIS full benefit consulting personnel. Bill is a 29+ year veteran in the employee benefits industry, from insurance carrier, benefit consultant, and now director. He has been published on the topics of health care reform and has served on the advisory committees and insurance lobbying groups at the state and local level. Bill served in the U.S Army Reserves as a non-commissioned officer for 11 years. He’s also involved with Special Olympics, youth sports coaching, and is a small group leader at his church.