Wagner Law Group is a nationally recognized practice in the areas of
ERISA and employee benefits, estate planning, employment, labor and
human resources and investment management.
in 1996, The Wagner Law Group is dedicated to the highest standards
of integrity, excellence and thought leadership and is considered to
be amongst the nation's premier ERISA and employee benefits law
firms. The firm has seven offices across the country, providing
unparalleled legal advice to its clients, including large, small and
nonprofit corporations as well as individuals and government entities
worldwide. The Wagner Law Group's 29 attorneys, senior benefits
consultant and four paralegals combine many years of experience
in their fields of practice with a variety of backgrounds. Seven
of the attorneys are AV-rated by Martindale-Hubbell
and six are Fellows of the American
College of Employee Benefits Counsel, an invitation-only
organization of nationally recognized employee benefits
lawyers. Seven of the firm's attorneys have been
named to the prestigious Super
Lawyers list for 2017, which highlights outstanding
lawyers based on a rigorous selection process.
Wagner Law Group
Connecticut Avenue, N.W.
Fax: (561) 293-3591
7108 Fairway Drive
Palm Beach Gardens, FL 33418
East Kennedy Boulevard
Tampa, FL 33602
Francisco, CA 94104
25 W. Moody Avenue
St. Louis, MO 63119
IRS to Begin Assessing
Penalties for Employer Shared Responsibility Provisions
has announced, through a series of questions and answers, that it
will begin the process of assessing penalties for violations of the
Affordable Care Act's ("ACA"s) employer shared
responsibility provisions for the 2015 calendar year.
Background. Under the ACA, applicable large employers
("ALEs"), which are employers with 50 or more full-time
equivalent employees, are subject to one of two penalties if they
fail to comply with the ACA's employer shared responsibility
first penalty applies if: (i) an employer fails to offer health care
coverage to "substantially all" of its full-time employees;
and (ii) a low-income, full-time employee receives a premium tax
credit through a Marketplace. In those situations, the employer must
pay an annual penalty of $2,000 (adjusted for inflation) multiplied
by the number of full-time employees in excess of 30.
other penalty applies in situations where: (i) an employer offers
health care coverage to its full-time employees that is either "unaffordable"
or does not provide "minimum value;" and (ii) a low-income,
full-time employee receives a premium tax credit through an Exchange.
In such situations, the employer must pay an annual penalty of $3,000
(adjusted for inflation) for each full-time employee who receives the
premium tax credit. However, this penalty is capped at $2,000
multiplied by the number of full-time employees in excess of 30.
Qs and As. The IRS says it will
issue Letter 226J to an ALE if, based on a review of Forms 1094-C and
1095-C, it determines that, for at least one month during 2015, at
least one full-time employee was enrolled in a qualified health plan
for which a premium tax credit was allowed. In the letter, the IRS
will detail the reasons why it believes the penalty should be
will have an opportunity to respond to the IRS before any employer
shared responsibility liability is assessed and demand for payment is
made. Letter 226J will provide instructions on how the ALE
should respond in writing, either agreeing with the proposed employer
shared responsibility payment or disagreeing with part or all of the
proposed amount. The response to Letter 226J will be generally be due
within 30 days of the letter's date.
after correspondence between the ALE and the IRS, it is determined
that the ALE is liable for an employer shared responsibility payment,
the IRS will assess the penalty and issue a notice and demand for
payment (i.e., Notice CP 220J). This Notice will include a
summary of the employer shared responsibility payment and will
reflect payments made, credits applied, and the balance due, if
any. The notice will instruct the ALE how to make payment, if
plans to issue Letter 226Js in late 2017.