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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.

Why Work with a Public Sector Specialist for Your Life and Disability Insurance?

National Insurance Services is not a law firm and no opinion, suggestion, or recommendation of the firm or its employees shall constitute legal advice. Readers are advised to consult with their own attorney for a determination of their legal rights, responsibilities and liabilities, including the interpretation of any statute or regulation, or its application to the readers’ business activities.

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Bill Enright

Bill Enright

Bill Enright believes in bottom-line honesty while empowering his customers with the knowledge they need to feel confident in their decisions. He is a 30+ year veteran with employee benefits expertise from insurance carrier to benefits consultant. Bill has been published on the topic of healthcare reform and has served on advisory committees and insurance reform lobbying groups at the state and national level. As an Employee Benefit Consultant in the Midwest Region, Bill will be working with both public and private sector schools, cities, and counties in Wisconsin. He is a licensed insurance agent and is a Certified Patient Protection and Affordable Care Act Professional (National Association of Health Underwriters).