Page 9 - AASBO EDGE Back to School 2020.indd

more details on the penalty for offering unaffordable “With hours fluctuating dramatically,
coverage.
and employees moving in and out of
Accurate Reporting Matters
full-time status on a month-to-month
Employers can remain at risk for reporting

penalties even if they navigate these issues with basis, employers may find it difficult
care. Inaccurate, incomplete, and late reporting of to respond to ACA status changes in
their offers of coverage (either furnishing to their
employees or filing with the IRS) can result in real time, creating compliance risk.”
penalties of up to $270 per return or statement with
a maximum penalty is $3,339,000 per employer. An employer could offer coverage to at least 95% of
Intentionally neglecting to furnish forms to full-time employees, but still be at risk of a penalty
employees or file with the IRS can result in penalties under Internal Revenue Code 4980H(b), which
of $550 per instance. Employers should take extra applies when a full-time employee not offered
care with their Form 1094 and Form 1095 reporting affordable coverage, or not offered coverage at all,
at the end of this year and the next few years. receives subsidized coverage in a state or federally
operated Marketplace. For 2020, this penalty is
What’s Your Risk? $3,860 annually, or $321.67 per month that an
affected employee receives a tax credit.
Failure to offer coverage to at least 95% of full-
time employees puts employers at risk of a
shared responsibility payment penalty under IRC Jessica Frier, Senior Health and Welfare Benefit Plan
4980H(a). The penalty amount in 2020 is $2,570 Consultant, can be reached at: (405) 523-5803 or jessica.
per full-time employee (minus the first 30 full-time frier@americanfidelity.com
employees).
EMPL O Y ER BENEFIT SOL UTIONS FOR EDUC ATION
EMPL O Y ER BENEFIT SOL UTIONS FOR EDUC ATION
EMPL O Y ER BENEFIT SOL UTIONS FOR EDUC ATION

Education Making the
Education
Education
professionals cafeteria
professionals
professionals
deserve a the happiest
deserve a
deserve a
specialist. place in
specialist.
specialist.
school!
Consider American
Consider American
Consider American
Fidelity for a
Fidelity for a
Fidelity for a With...
different opinion.
different opinion.
different opinion. Food kids love to eat
The largest team of chefs & dietitians
And fun, innovative programs
Maggie Bolt
Maggie Bolt
maggie.bolt@americanfidelity.com ...we are Chartwells K12 and we’re
Maggie Bolt
maggie.bolt@americanfidelity.com serving up happy & healthy
maggie.bolt@americanfidelity.com
800-616-3576
800-616-3576
americanfidelity.com
800-616-3576
americanfidelity.com
americanfidelity.com
For more information please contact:
Tyler Geopfert Regional Sales Director
e. tyler.geopfert@compass-usa.com
c. 480-500-5066
SB-30815-0217 American Fidelity Assurance Company
SB-30815-0217 American Fidelity Assurance Company
SB-30815-0217 American Fidelity Assurance Company
9