Complying with the Affordable Care Act is important. Employers face steep penalties for non-compliance.
The following outlines penalties as noted on IRS.gov. Please note that increased penalty amounts may apply for certain failures in the case of intentional disregard. The penalty rates and maximums for not filing correct information returns and/or not furnishing correct payee statements, including inflationary adjustments if applicable, are reflected in the following:
| Small Businesses with Gross Receipts $5 Million or Less (*Average annual gross receipts for the most recent 3 taxable years) IRC 6721 & IRC 6722 | ||||||
|---|---|---|---|---|---|---|
| Time returns filed/furnished | Due 01-01-2011 thru 12-31-2015 | Due 01-01-16 thru 12-31-2016 (Inflation adjusted) | Due 01-01-17 thru 12-31-2017 (inflation adjusted) | Dues 01-01-18 thru 12-31-2018 (Inflation Adjusted) | Due 01-01-2019 thru 12-31-2019 | Due 01-01-2020 thru 12-31-2020 |
| Not more than 30 days (by March 30 if the due date is February 28) | $30 per return/ $75,000 maximum | $50 per return/ $185,000 maximum | $50 per return/ $186,000 maximum | $50 per return/ $187,500 maximum | $50 per return/ $191,000 maximum | $50 per return /$194,500 maximum |
| 31 days late – August 1 | $60 per return/ $200,000 maximum | $100 per return/ $529,500 maximum | $100 per return/ $532,000 maximum | $100 per return/ $536,000 maximum | $100 per return/$545,500 maximum | $110 per return/$556,500 maximum |
| After August 1 or Not at All | $100 per return/ $500,000 maximum | $260* per return/ $1,059,500 maximum | $260 per return/ $1,064,000 maximum | $260 per return/ $1,072,500 maximum | $270 per return/ $1,091,500 maximum | $270 per return/$1,113,000 maximum |
| Intentional Disregard | $250 per return/ No limitation | $520 per return/ No limitation | $530 per return/ No limitation | $530 per return/ No limitation | $540 per return/No limitation | $550 per return/ No limitation |
| Large Business with Gross Receipts of More than $5 Million and Government Entities (*Average annual gross receipts for the most recent 3 taxable years) IRC 6712 and IRC 6722 | ||||||
|---|---|---|---|---|---|---|
| Time returns filed/furnished | Due 01-01-2011 thru 12-31-2015 | Due 01-01-16 thru 12-31-2016 (Inflation adjusted) | Due 01-01-17 thru 12-31-2017 (inflation adjusted) | Dues 01-01-18 thru 12-31-2018 (Inflation Adjusted) | Due 01-01-2019 thru 12-31-2019 | Due 01-01-2020 thru 12-31-2020 |
| Not more than 30 days (by March 30 if the due date is February 28) | $30 per return/ $250,000 maximum | $50 per return/ $529,500 maximum | $50 per return/ $532,000 maximum | $50 per return/ $536,000 maximum | $50 per return/ $545,500 maximum | $50 per return /$556,500 maximum |
| 31 days late – August 1 | $60 per return/ $500,000 maximum | $100 per return/ $1,589,000 maximum | $100 per return/ $1,596,500 maximum | $100 per return/ $1,609,000 maximum | $100 per return/$1,637,500 maximum | $110 per return/$1,669,500 maximum |
| After August 1 or Not at All | $100 per return/ $1,500,000 maximum | $260 per return/ $3,178,500* maximum | $260 per return/ $3,193,000 maximum | $260 per return/ $3,218,500 maximum | $270 per return/ $3,275,000 maximum | $270 per return/$3,339,000 maximum |
| Intentional Disregard | $250 per return/ No limitation | $520 per return/ No limitation | $530 per return/ No limitation | $530 per return/ No limitation | $540 per return/No limitation | $550 per return/ No limitation |
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
