by Rachel Johnson

Affordable Care Act Penalty Assessment Process – Letter 226 J

The Internal Revenue Service (IRS) has started sending out Letter 226 J, which informs employers of liability under the Affordable Care Act (ACA) Employer Shared Responsibility Provisions.

Applicable Large Employer’s (ALE’s) are employers with 50 or more full time or full time equivalent employees. ALE’s were required to offer affordable, minimum value coverage to a portion of their full time employees or be subject to one or both penalties under the ACA.

Employers with less than 100 employees had transition relief available.

Letter 226 J gives an amount due by the employer, the proposed Employer Shared Responsibility Payment (ESRP).  Letter 226 J gives the employer specific actions to follow and 30 days to respond.

Please contact your insurance advisor, accountant, and/or attorney so they can assist you if you receive Letter 226 J.

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