In Notice 2023-70, the IRS announced that for plans that end on or after October 1, 2023, and before October 1, 2024, the PCOR rate per covered individual is $3.22 per plan participant. The PCOR fee is calculated based on the average number of lives covered under the policy or plan. As a reminder, the IRS announced [...]
On December 12th, the IRS issued final regulations around ACA’s Employer Mandate filing of 1095 and 1094 forms. Below are details of the new IRS final regulations and the impact on employers. Final regulations confirm end of good-faith transition relief The final regulations make clear that the current good-faith transition relief is no longer available [...]
On October 2nd, the IRS issued notice 2020-76, which extends the deadline for employers and other coverage providers to distribute forms 1095-B and 1095-C to individuals for the 2020 reporting year. The due date for furnishing the 2020 Form 1095-B and the 2020 Form 1095-C to applicable individuals is extended from January 31, 2021 to March [...]
The Internal Revenue Service (IRS) recently issued Revenue Procedure 2020-36 which indexes the contribution percentages for 2021 for purposes of determining affordability of an employer’s plan under the Affordable Care Act (ACA). For plan years beginning on or after January 1, 2021, employer-sponsored coverage will be considered affordable if the employee’s required contribution for self-only coverage does [...]
The annual fee to fund the federal Patient-Centered Outcomes Research Institute (PCORI), paid by employers that sponsor self-insured health plans and by commercial group health insurance providers, will go up by .09 cents per employee or dependent enrolled in the health plan from $2.45 (filed July 31, 2020) to $2.54 (filed July 31, 2021). The [...]
The Internal Revenue Service is finally issuing penalty letters to employers who failed to provide health coverage in compliance with the employer shared responsibility provisions of the ACA for the 2015 tax year. Some letters may describe a no coverage excise tax while others may assess an excise tax for failure to provide “adequate or [...]
All the talk about repeal and replace seems to have lulled many plan sponsors into a false sense of security, thinking that ACA regulations weren’t going to be enforced. Unfortunately, the IRS is preparing to begin penalizing non-compliant plans, which is why we continue to encourage our clients to keep their eye on the ball [...]
