Employer Mandate Penalty

Under the Affordable Care Act (ACA), an employer with at least 50 full-time and full-time equivalent employees must play (provide minimum essential health coverage to full-time employees) or pay (a penalty). Which government entity has the authority to issue the certification necessary to assess the employer’s shared responsibility payment: IRS or HHS? A recent case gave the authority to the IRS. The IRS issues Letter 226-J to assess the penalty. But an earlier case said HHS was responsible for certification, and the IRS had to wait for this certification before assessing the penalty. So, at present it depends on where you’re located. #IdeaoftheDay

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