IRS Letter 226J: Employer Shared Responsibility Payments
The IRS is preparing to send out the 226J letter, which informs employers of potential penalties for 2015 if an employee claimed a tax credit because they didn’t have employer-sponsored coverage.
If you receive a Letter 226J, you must respond within 30 days or face penalties. The letter provides steps to take if you agree with the proposed Employer Shared Responsibility Payment and if you disagree. A sample version of the letter is available on the IRS website, located here: https://www.irs.gov/pub/notices/ltr226j.pdf.
Please contact our Employee Benefits team if you have any questions.