As the deadlines regarding the employer reporting requirements under the Affordable Care Act draw closer, a new law has increased the penalties that companies may face for non-compliance.
Here is how the Trade Preferences Extension Act of 2015 will increase those penalties:
- The penalty for failure to file an information return was generally $100 but has been increased to $250 for each return for which such failure occurs. The total penalty imposed for all failures during a calendar year had a maximum of $1,500,000, but that has been increased to $3,000,000.
- The penalty for failure to provide a correct payee statement was initially $100 but has been increased to $250 for each statement with respect to which such failure occurs. The total penalty for a calendar year was initially $1,500,000 but has been increased to $3,000,000.
- In addition, special rules apply that increase the per-statement and total penalties if there is intentional disregard of the requirement to furnish a payee statement
Other Resources
For additional information on the ACA’s employer reporting requirements, I encourage you to download the “2015 Checklist For Completing IRS Forms 1094-C & 1095-C” resource today.
If you have any questions, please contact the CBG Benefits team at 781-759-1222 or via email at info@CBGBenefits.com.