What should you do if your company gets a letter from the IRS proposing Employer Shared Responsibility Payment penalties?
Do what George did.
Do what George did.
Several years ago George decided to have his payroll company handle the Affordable Care Act (ACA) reporting for his company. Lots of employers make the same decision, and lots of payroll companies handle it well - but to do so, the employer, payroll provider, and employee benefit broker or consultant need to work together to ensure that the information entered in the payroll software is correct.
George got a letter from the IRS about the first year that his payroll company handled the ACA reporting saying that his company owes the IRS more than half a million dollars in penalties for failing to offer health coverage that met ACA standards. When he asked his payroll company about it, they told George that they fulfilled their responsibility by doing the reporting based on what was entered in the system, and that they were not responsible if the information was incorrect.
George got a letter from the IRS about the first year that his payroll company handled the ACA reporting saying that his company owes the IRS more than half a million dollars in penalties for failing to offer health coverage that met ACA standards. When he asked his payroll company about it, they told George that they fulfilled their responsibility by doing the reporting based on what was entered in the system, and that they were not responsible if the information was incorrect.
