The IRS Affordable Care Act (ACA) launched an assessment as a response to the 2015 employer mandate taxes through Form 14764. As usual, all the papers had to be sent together as a set of mandatory annual submissions. In essence, Form 14764 was an ESPR (employer shared responsibility payment) Response. The employer had to fill it out by clearly stating whether they agreed or disagreed with the proposed ESPR. Respondents had to file the submission before the due date mentioned on the first page. As a result of the survey, as of 2015, according to Employer Mandate Tax, a US employer that had more than 50 employees in full-time positions had to provide health insurance for them. If they failed to comply, an employer mandate tax penalty would apply under the Affordable Care Act, colloquially known as Obamacare.
In a nutshell, the form had to contain the respondent's signature and completion date, as well as a statement detailing their reasons. The employer could attach supporting documentation if they found it necessary. For instance, the Employee Premium Tax Credit (PTC) Listing could be modified, provided that there were changes compared to the previously filed documentation.
Tax advisors familiar with ACA requirements could help the applicant write a response. In case the respondent needed additional time, the form provided a phone number to request it. In many cases, it made sense for companies to do so. One of the most popular situations for requesting an extension was changes at the top management level. For example, if the employee in charge of filing left the company and their replacement had no access to the IRS notifications. Not filing would lead to severe consequences. The employer needed to complete all required forms and the employee enrollment documentation for the respective year. In case of non-compliance, the IRS had the right to take extra measures. Consequently, the interest could accrue in case of penalties, starting from the date a notification had been sent until the employer paid their ESRP.
The ACA Employer Mandate was repealed in 2019. Nonetheless, employers with 50 plus FTE (full-time employees) still have the same obligations regarding health care plans. Another mandatory procedure stipulates that employers must file proof of compliance to the IRS. What was the actual financial impact of the ACA? Opinions on the matter are still divided, leaning more towards disapproval.