Businesses with fewer than 50 employees are exempt from the employer's mandate of the Affordable Care Act (ACA). However, if they choose to offer health coverage, they must meet certain ACA specifications. The Internal Revenue Service (IRS) can determine if an employer has not met the requirements and is subject to a financial penalty, known as an employer shared responsibility payment (ESRP). It is important for employers to keep documentation and records to show that they are complying with the employer's mandate.
Arizona residents, members, employers and brokers should contact Aetna or their employers directly for information about Aetna products and services. If the employer responds with the documentation of the corrected data that was previously contained on forms 1095-C, the IRS will complete its review and send a 220J notice to the employer. Every year, public markets must send notices to employers who may owe a fine for not complying with the employer's mandate. All applicable large employers must submit an annual report that ensures compliance with the employer's mandate.
It is essential for employers to understand their obligations under the ACA and take steps to ensure compliance. Employers should consult with their tax advisors or legal counsel to ensure they are meeting all requirements. Additionally, employers should keep up-to-date on any changes in regulations or laws that may affect their business. By staying informed and taking proactive steps, employers can avoid costly penalties.
