Earlier this year, I wrote what employers should share with their employees who received an IRS Form 1095. Since the U.S. Department of Health and Human Services (HHS) will soon begin notifying employers about employees who are receiving advance premium tax credits (APTC) or subsidies on the ACA federal exchange, employers should get a little advice, too.
There is no mistaking what the HHS form is conveying based upon this sample employer notice, but the envelope will be unclear as to who it is from and there will be uncertainty as to whom at your business it will be addressed. In short, it could be perceived as junk mail, but it is definitely not. The employer must address the information and do so within 90 days.
These notices are not employer accusations; rather, they validate the accuracy of your employees' statements. So while you might have offered affordable and minimum value health coverage throughout the year, you also might have an employee who waived coverage, obtained it through the federal exchange and attested their employer failed to provide such coverage triggering two things: 1. a subsidy to the employee for their premium; and 2. a $3,000 employer penalty.
Employers have 90 days to appeal an HHS notice on an appeal form. If an employer receives a notice, you should act quickly and contact your counsel to get proper advice.
One final and important note to know. Other than providing accurate information, the employer cannot do anything that involves termination of the employee as there are ACA retaliation rules that impact the employer.
Complete and submit the form timely and wait for the IRS to determine any liability or payment.