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$100-a-day penalties: ACA non-compliance can be expensive

Published
  • September 13 2013, 1:08am EDT

While a lot of employers are focused on the penalties associated with not offering appropriate coverage (the $2,000 penalty) or not offering affordable coverage (the $3,000 penalty), what can get overlooked is the myriad of daily penalties that come with non-compliance. Take the Oct. 1 exchange notice requirement as an example. While the regulations do not identify a specific penalty for failing to comply with the notice requirement, the Affordable Care Act has a $100-a-day general non-compliance penalty.

This general penalty requires employers to correct compliance failures within 30 days of discovery or self report a $100-a-day penalty for failing to comply on IRS Form 8928 for each day the employer failed to comply with an ACA mandate. .

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