ACA Guidance Updated

Posted by BAS - 03 September, 2020

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The IRS updated its Affordable Care Act guidance to take into account cost of living adjustments to ACA penalties. Question/Answer 55 was changed to reflect the 2021 penalty amount of $2,700 (an increase from $2,570 for 2020) for an applicable large employer who fails to offer minimum essential coverage to at least 95% of its full-time employees. The penalty amount that applies when an Ale offers minimum essential coverage to full-time employees but the coverage is either unaffordable or does not provide minimum value will be $4,060 in 2021 (an increase from $3,860 in 2020).

Question/Answer 40 was also changed to reflect the increase in the affordability percentage to 9.83% starting in 2021.

The Affordable Care Act Q&As may be accessed by clicking here.

Topics: Health Care Reform (ACA), Affordable Care Act, HR & Benefit Plans, HR & Benefits News


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