IRS Updates Employer Shared Responsibility Payment Information

Last month, the IRS provided guidance regarding the procedures it will use to propose and assess employer shared responsibility payments under the Affordable Care Act ("ACA"). More recently, the IRS issued sample Forms 14764, 14765 and Letter 226J that provide a window into the employer shared responsibility information it has collected and will be reporting to employers.

Below is a brief summary of the guidance, which was issued in the form of updates to the IRS' web-based frequently asked questions ("FAQs").

How Will an Applicable Large Employer ("ALE") Know that It Owes a Shared Responsibility Payment?

In FAQ 55, the IRS explained that it intends to issue Letter 226J to ALEs that it has determined had one or more employees who enrolled, for at least one month in the year, in a qualified health plan for which a premium tax credit was allowed. Letter 226J will include, among other information, a brief explanation of Code Section 4980H, a table summarizing the