Pay or Play Compliance 2025

The Affordable Care Act’s employer penalty rules are known as “pay or play compliance rules”. According to these rules, the amount of the penalty depends on whether an employer has offered coverage to substantially all (95%) of full-time equivalent employees.

As per the employer mandate, employers with 50 or more FTE’s (full-time equivalent employees) are required to file forms 1094C and 1095C for each FTE. Employers should file this annual report to the IRS detailing the coverage offered by them to their FTE’s.

Employers that do not submit an annual IRS return, do not file their return in a timely manner or there is any errors in reporting or processing of the 1094-C and 1095-C forms may be subject to a penalty. The penalties are $290 per form, per day up to $3,426,000 annually.

We, at ACA Compliance Solution Services, Inc., are ready to help you in managing compliance issues in order to avoid heavy fines with the IRS. We are accredited to transmit 1094 and 1095 forms for all types of businesses.

For further information, feel free to contact us at (818) 330-3900 or click here.

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