ACA PENALTY LETTERS EXPECTED SOON – WHAT TO DO IF YOU GET ONE?
Is your company required to comply with the Affordable Care Act (ACA or Obamacare)? If so, you will recall the struggle in 2016 of counting full-time equivalent employees and learning the codes required to report pertinent information to the IRS.
Unfortunately, if your reporting was inaccurate, you may be subject to employer mandate penalties under IRS Code 4980H.
Recently, the IRS released a sample Letter 226J, which is the notice provided to employers subject to penalties. The release of the sample letter is a strong indication that the employer mandate penalty notices will be forthcoming.
What To Expect
If you are subject to employer mandate penalties, the Letter 226J will be accompanied by two other documents, which are important to understand and review.
Form 14764 – Response to Letter 226J
This form should be completed and returned to the IRS regardless of whether you agree with the proposed penalty being assessed.
Form 14765 – Assessable Full-Time Employees
This form lists the assessable full-time employees for the year and code combinations entered on Form 1095-C.
An employee is considered an assessable full-time employee is he or she satisfies the following three-prong test:
- The company filed a Form 1095-C on behalf of the full-time employee;
- The employees received a premium tax credit for one or more months for the tax year; and
- The company did not report on Form 1095-C, a relief provision from the employer mandate penalties for one or more of the months the employee receive a premium tax credit.
Every employee listed on Form 14765 trigged a IRS Code 4980H penalty for at least one month for the tax year. Form 14765 will indicate which months the assessable full-time employee triggered an employer mandate penalty — those months will not be highlighted.
There is no reason to panic if you receive a Letter 226J. Complete Form 14764 and sent it back to the IRS within the timeframe, whether you agree with the penalty assessed or not.
Have questions about your ACA reporting requirements? Attend our upcoming ACA Compliance & Reporting training on December 14, 2017.
HR FORMS
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Workplace compliance and HR administration
Nevada Association of Employers (NAE) has compiled a collection of commonly used HR forms, checklists, policies, and employer guides to help Nevada businesses manage workplace compliance and HR administration.
Whether you are looking for an employment application, employee file checklist, payroll deduction form, performance appraisal form, or FLSA exemption worksheet, NAE provides resources designed to support employers with day-to-day HR operations.
These tools help employers maintain consistent documentation practices and ensure workplace policies align with federal and Nevada employment regulations.
Employers who need additional guidance on HR compliance may also benefit from services such as HR Hotline support or professional HR audits, which help identify potential compliance gaps before they become legal issues.
Access HR Forms Through the Member Portal
NAE members can access these HR resources through the Member Portal (login required). The portal includes downloadable HR forms, customizable policies, and other templates that help employers manage employee documentation and HR procedures efficiently.
These resources are designed to work alongside other NAE compliance tools, including the HR Compliance Checklist and Employee Handbook Review services that help employers maintain legally compliant workplace policies.
Lets Start Today
Need a Form or Resource Not Listed?
If you don’t see the HR resource you need, NAE’s HR professionals and employment law attorneys are available to help.
Members can request guidance or customized resources through services such as Legal Hotline or employment legal services, which provide expert advice on workplace compliance and HR documentation.
Contact Nevada Association of Employers to speak with our team about your HR needs.
📞 Phone: 888-438-3125
📧 Email: info@nevadaemployers.org
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