When it comes to ACA reporting, the excise tax can cost your organization.

9.14.15

Affordable Care Act reporting is already overwhelming, and having to take potential penalties into consideration can make it even more stressful. Failing to provide affordable coverage to full-time employees can result in pricy penalties. Read on to see how much these fines can cost and what you can do to save yourself from fees.

When it comes to ACA reporting, the excise tax can cost your organization.

How Much the Excise Tax Can Cost

In 2015, the excise tax will affect organizations with 100+ full-time and full-time equivalent employees. Starting in 2016, the threshold goes down to 50+ employee groups. The actual financial penalties can fall under two summaries:
• A $2,000 per employee fine if coverage is not offered to the prescribed percentage of full-time employees
• A $3,000 per employee fine if coverage is offered to the prescribed percentage, but does not meet minimum value affordability requirements

These penalties are triggered if even one full-time employee is eligible for a premium tax credit and enrolls for health coverage through the marketplace after not being offered Minimum Value Coverage and Minimum Essential Coverage from their employer.

Your ACA reporting will let the IRS know whether or not you offered the required coverage to the prescribed percentage of employees.

Preparing Yourself with my aca partner

You have enough on your plate when it comes to ACA reporting, so worrying about excise taxes is just another burden in a complex process. my aca partner can help. Contact Vicki Trettel at 330.867.7350 to schedule an appointment with one of our experts.

Brian Morgan, CPA/Senior Manager – Audit & Assurance

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