08/23/2022
SmartHR can assist small-mid size employers with benefits! We’d love to provide you with a quote at no cost!
If you are defined as a large employer, please note that the ACA Pay or Play Penalties will Increase for 2023!
Two provisions of the Affordable Care Act apply only to applicable large employers (ALEs): the employer shared responsibility provision and the employer information reporting provision for offers of minimum essential coverage. In addition, self-insured ALEs – that is, employers who sponsor self-insured group health plans – have additional provider information reporting requirements.
Employers must determine their ALE status each calendar year based on the average size of your workforce during the prior year. Employers that had at least 50 full-time employees, including full-time equivalent employees, on average last year, are most likely an ALE for the current year.
On Aug. 16, 2022, the IRS updated its frequently asked questions (FAQs) on the employer shared responsibility (pay or play) rules under the Affordable Care Act (ACA) to include updated penalty amounts for 2023. For calendar year 2023:
* The adjusted $2,000 penalty amount is $2,880
* The adjusted $3,000 penalty amount is $4,320