IRS Releases Forms for Pay or Play Penalty

Posted by BAS - 30 November, 2017

header-picture

As a follow up to our article about the imminent assessment of employer shared responsibility penalties (read our prior article by clicking here), the IRS released forms for employers to use to respond to penalty assessments.

An applicable large employer will use Form 14764 to identify its agreement or disagreement with a penalty amount proposed by the IRS. If the employer agrees with the penalty, it will sign the form and return it. Payment will be made by check or electronically. If the employer disagrees with the penalty, it will explain its disagreement on Form 14754 and use From 14765 to indicate changes.

Form 14765 will list the employer’s penalty-assessable full-time employees and the indicator codes reported for the employees. If an entry on the form is not highlighted, the employee received a premium tax credit and the IRS thinks the employer is subject to a penalty for the employee. The employer will make corrections directly on the form to indicate disagreement with the penalty amount.

The IRS has created a webpage- Understanding Your Letter 226-J – which provides details on ACA requirements and responding to penalty assessments. The webpage can be accessed by clicking here.

Topics: Health Care Reform (ACA), HR & Benefits Compliance


Recent Posts

Question of the Week - Paying for COBRA Coverage

read more

Enhancing Cybersecurity: New Guidance for HIPAA Compliance and Risk Management

read more

BAS' Electronic Data Interchange (EDI) Service: Streamlining Employee Data Management

read more