Did you recently receive a notice indicating that one or more of your employees enrolled in health care coverage through the Marketplace and reported he/she did not receive an offer of adequate coverage from you? The notice states if various conditions are met, you may have to pay a penalty to the IRS in the future.
However, keep in mind that only employees of Applicable Large Employers (ALEs) may trigger the penalties associated with the ACA's Employer Shared Responsibility provisions. ALEs, generally companies with 50 or more full-time equivalent employees, are required to offer full-time employees health insurance that provides at least minimum essential coverage and minimum value.
The notice appears to have been generated based on self-reported data, so if you previously determined you were a small employer in 2015 and does not belong to a group of employers that could render you an ALE for tax purposes, you may choose to disregard the notice. When employees apply for coverage through the Marketplace, they are not asked whether their employer is an ALE. As a result, it is possible that small employers not subject to Employer Shared Responsibility provisions have received these notices, and do not need to file an appeal.
If you are an ALE and believe you received a Marketplace notice in error, it may be advisable for them to appeal it, although doing so does not necessarily affect whether penalties are assessed.
In all cases, the best course of action is to consult with your tax attorney or the IRS for further clarification and advice. This information is our interpretation of the law; it is not intended to be legal advice and should not be interpreted as such.
