The Internal Revenue Service (IRS) began sending ACA penalty letters (Letter 226J) in late 2017 to Applicable Large Employers (ALE), generally employers with 50 or more full-time or full-time equivalent employees. These letters cover the 2015 calendar year.

The IRS determination of whether an employer may be liable for an employer shared responsibility payment and the amount of the potential payment are based on information reported to the IRS on Forms 1094-C and 1095-C and information about full-time employees of the (ALE) that were allowed the premium tax credit.

For more information visit the links below:

Questions and Answers on Employer Shared Responsibility Provisions Under the Affordable Care Act

Letter 226J

Understanding your Letter 226-J

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