Under the Individual Shared Responsibility provision of the Affordable Care Act (ACA), a tax penalty is imposed on individuals that do not maintain coverage under a health plan that provides minimum essential coverage (MEC). The reporting requirements of MEC are declared in Internal Revenue Code (IRC) Section 6055.
The Play-or-Pay provision of the ACA can impose excise tax penalties on applicable large employers (ALEs) not offering their group medical plan to enough full time employees and dependents or the coverage offered is not of minimum value and affordable. The ALE’s reporting requirements are declared in IRC Section 6056.
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