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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.