Just in Time for the Holidays: The IRS Announces Intention to Access Pay or Play Penalties
The IRS recently “announced” its intentions to access penalties under the Employer Shared Responsibility Penalty (ESRP)- also known as “pay or play penalties.” This announcement was made by updating a series of over 60 FAQs that are published on the IRS website to address ESRP provisions under the ACA.
In late 2017, the IRS intends to send affected large employers a letter notifying them of a proposed ESRP. Employers with an average of at least 50 full time employees (including full time equivalent employees) in 2014 are subject to the ESRP.
Employers will typically have only 30 days from the date of the notice to respond. Because of the short timeframe to respond, employers should prepare ahead of time. Contact Brown & Brown of Detroit at 586.977.6300 for more information on how prepare yourself.