Pay Adjustments That Impact ACA Affordability
Compensation changes that occur throughout the year can affect whether an employer's health coverage continues to satisfy the ACA's affordability requirements
Question of the Week - Are there penalties for late ACA filings?
Q.- We didn’t realize we had to file our ACA forms electronically and our paper forms were not accepted by the IRS. Are there penalties for filing late?
Simplify ACA Reporting with Our Affordable and Accurate Solution
Q.- We didn’t realize we had to file our ACA forms electronically and our paper forms were not accepted by the IRS. Are there penalties for filing late?
A.- Yes. For 2023 returns and statements filed and furnished in 2024, the penalty for not filing electronically is increased to $310 per return, with a maximum penalty of $3,783,000 ($1,261,000 for smaller filers). Correcting failures within 30 days reduces penalties to $60 per return or statement, capped at $630,500 ($220,500 for smaller filers). Corrections made by August 1 result in reduced penalties of $120 per return or statement, not exceeding $1,891,500 ($630,500 for smaller filers). Penalties increase if there’s intentional disregard for filing requirements.
Benefit Allocation Systems (BAS) provides online solutions for: Employee Benefits Enrollment; COBRA; Flexible Spending Accounts (FSAs); Health Reimbursement Accounts (HRAs); Leave of Absence Premium Billing (LOA); Affordable Care Act Record Keeping, Compliance & IRS Reporting (ACA); Group Insurance Premium Billing; Property & Casualty Premium Billing; and Payroll Integration.
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This article is for informational purposes only and is not intended as legal, tax, or benefits advice. Readers should not rely on this information for taking (or not taking) any action relating to employment, compliance, or benefits. Always consult with a qualified professional before making decisions based on this content.
Newly Married Spouse Reimbursement
A health FSA cannot reimburse an employee for a spouse's expenses paid before the marriage — dependent status is determined when the expense was incurred, not when it's submitted.
Practical Steps Employers Can Take to Reduce ACA Penalties
Most ACA penalties stem from operational issues that occur throughout the year, not just year-end reporting.