ACA reporting is still required. Large employers need to continue to comply with 2017 ACA reporting requirements, as Congress has still been unsuccessful in its attempts to repeal it.

If you are a large employer and have already signed up for the ACA service, please ensure that you update the relevant information in our system accordingly so your company is ready for 2017 reporting.

Letter 226-J Notices

The IRS will begin to mail “pay or play” penalty letters, informing employers of their potential liability or a “pay or play” penalty. Before the penalty is put into effect, employers will be given the chance to respond.

The letter (Letter 226-J) will be addressed to Applicable Large Employers (ALE). These are, generally, employers with at least 50 full-time employees.

A brief summary of Letter 226-J:

• A summary of penalty payments, listing the proposed monthly payments.
• The proposed course of action the ALE should take, whether it agrees or disagrees with the proposed penalty.
• A list of the ALE’s employees who for at least one month in the year were full-time employees allowed a premium tax credit and for whom the ALE did not qualify for an affordability safe harbor or other relief.
• Response form.
• For more information, click here. Understanding Letter 226-J

If, after correspondence between the ALE and the IRS, the IRS determines that an ALE is still liable for a penalty payment, the IRS will issue a demand for payment.

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