IRS Q&A Updates Include 2018 Employer Shared Responsibility Penalty Amounts

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The IRS has provided updates to the Employer Shared Responsibility Q&A guidance on its website. Some key items are as follows:

  • 2018 Penalty Amounts. In Q/A-54, the IRS has announced the adjusted penalty amounts per full-time employee for Code § 4980H failures occurring in the 2018 calendar year—$2,320 under Code § 4980H(a) and $3,480 under Code § 4980H(b).
  • Affordability Calculation.Q/A-39 has been updated to reflect the 2018 affordability threshold for 2018 is 9.56%.
  • Expiration of Transition Relief. Q/A-2 notes that transition relief that was only available in 2015 is not available for 2017 and future years.
Categories: Health Care Reform, Compliance | Tags: ACA , Employer Shared Responsibility , Penalty , 4980(h) , IRS , Q&A , Affordability | Return