---
title: Pay or Play Penalties are Still Applicable
description: The IRS confirms that the employer shared responsibilities or pay or play penalties continued to apply for applicable large employers (ALEs).
image: https://blog.nisbenefits.com/hubfs/pay%20or%20play%20penalties%20B.jpg
---

![Pay or Play Penalties are Still Applicable](https://blog.nisbenefits.com/hubfs/pay%20or%20play%20penalties%20B.jpg)

# Pay or Play Penalties are Still Applicable

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- Pay or Play Penalties are Still Applicable

[ Pierre Guilfoile ](https://blog.nisbenefits.com/author/pierre-guilfoile) 09/17/2019 [ Legislative News](https://blog.nisbenefits.com/topic/aca-other-legislative-news)

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 1 Minutes

*1 minute read*

The IRS released an [information letter](https://www.irs.gov/pub/irs-wd/19-0008.pdf) which confirms that the employer shared responsibilities or pay or play penalties continue to apply for applicable large employers (ALEs) that fail to offer acceptable health insurance coverage to their full-time employees and dependents.

The letter also indicates that the law doesn’t provide for any waiver for the penalties and reiterates that no transition relief is available for 2017 and future years.

[![Take the Quiz](https://no-cache.hubspot.com/cta/default/3325505/a2c9d853-6c09-4cc1-8974-2f04076bf687.png)](https://cta-redirect.hubspot.com/cta/redirect/3325505/a2c9d853-6c09-4cc1-8974-2f04076bf687)

Trump’s 2017 executive order broadly directed federal agencies to waive, delay, or grant exemptions from Affordable Care Act (ACA) requirements that may pose a financial burden. However, the executive order did not provide guidance about any particular ACA requirement or provision and doesn’t change any existing regulations.

The letter reiterates that the executive order does not change the law. ACA provisions are still effective until changed by Congress. Taxpayers are still required to follow the ACA, including paying any applicable penalties they may owe.

For more information, [download the bulletin](https://blog.nisbenefits.com/hubfs/Blog%20-%20supporting%20documents/bulletin%20-%20Pay%20or%20Play%20Penalties%20Still%20Apply.pdf).

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