This Holiday season you can be receiving holiday letters and a not so happy letter from The IRS.  Recently, The IRS verified that they will be sending employer’s notices that they can possibly owe employer shared responsibility penalties.  Letter 226J will entail calculations of amounts employers will owe for the tax year of 2015.

Applicable large employer or ALE, are subject to the ESR provisions.  The employer mandate applies to applicable large employers.  An employer who has at least 50 full-time employees on average during the year before is and ALE for the current calendar year.  The Employer Shared Responsibility Payment (ESRP) amounts are $2,080 and $3,120.  Employers should definitely not ignore this letter.  In recent years the IRS has not been strict on penalties but this coming year they have started to take these penalties very seriously.  There are only 30 days to respond to this letter and they employer must tell the IRS whether they disagree with what the IRS has sent.  If the employer does not respond to the letter within 30 days, they will be penalized more.  Interest will accumulate from the date of Notice and Demand and continue till the amount due is paid.

Cosmo Insurance has guided a bus company from paying penalties from offering employees benefits that were not up to par.  Employers issues complaints saying they did not agree with the type of benefits offered.  The Bus Company was going to have to pay up to $960,000 a year for benefits employers were asking for.  Cosmo Insurance created a MEC (minimum essential coverage) plan that saved the bus company $942,000.

It is not too late to create a MEC plan for your large businesses.  If you receive this Letter 266J, call Cosmo Insurance.  We see if you owe penalties, we handle the penalties, and we also have Obama Care attorneys who have experience with handling these situations.  Contact us at 732-363-3888.





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