02/05/2025

How Our ACA Penalty Resolution Saved A Client $500,000

Consider these steps when examining ways to resolve a penalty

Business Situation

Our client, a mid-sized facilities management company, received a notice from the Internal Revenue Service (IRS) indicating a discrepancy in their Affordable Care Act (ACA) filings. The notice warned our client was responsible for an estimated Employer Shared Responsibility Payment (ERSP) of over $500,000 – claiming that the company had not provided the minimum essential health insurance coverage (MEC) to their employees as is required by the ACA.

Concerned about the notice, the size of the penalty, and the validity of the charge, the company engaged the ACA experts at Clark Schaefer Strategic HR to investigate and resolve the issue.

Our Approach and ACA Penalty Resolution

Our ACA experts took a swift and thorough approach conducting a comprehensive review of the ACA reporting documents and filings, in addition to the employee wage records, benefit plan documents and enrollment records.

Please select this link to read the complete article from Clark Schaefer Strategic HR.