January 23, 2023

IRS ACA Compliance Reporting Updates for 2023

What is ACA Compliance?

The Affordable Care Act requires organizations to offer affordable insurance with minimum essential coverage and file the corresponding forms by the designated deadlines.

2023 ACA Compliance Changes & Penalties

2023 ACA Compliance Changes & Penalties

What is the compliance threshold?

The ACA mandates that large employers, those with over 50 full-time equivalent employees, offer affordable minimum value coverage to “substantially all” full-time employees. “Substantially all” means 95%.


Failure to identify full-time employees and offering coverage or contributing less than the ACA affordability standards may subject your company to penalties.

While an employer may intentionally or unintentionally exclude up to 5% of its employees based on this 95% rule, the employer’s actions cannot be done in a discriminatory fashion.

What are the penalties?

Penalty A: Failure to offer coverage to 95% of full-time employees

Penalty B: Failure to provide affordable, minimum value coverage 

What determines affordability?

The amount of household income an eligible individual can contribute toward the cost of coverage in order for coverage to be considered affordable.

What stays the same?

Failure to file forms 1094/1095 with the IRS = $280/form ($3,392,000 maximum)

How Ameriflex can help:

Ameriflex can mitigate the risk by mapping out and executing compliance requirements for you. 

Read more about compliance in our Compliance Basics article and our Compliance Services Guide.

What’s in this article?

Other Recent Posts
It’s true that Health Savings Accounts can pay for medical expenses now, but the most powerful tax advantages and benefits come from saving the balance for later, even into retirement. With the growth in HSA popularity over the last few years, anyone looking for employee benefits has read about or heard of the triple-tax advantage...
President Biden has announced that both the COVID-19 Public Health Emergency and the related National Emergency, ongoing since March 2020, came to an end on May 11, 2023. As a result, the corresponding Outbreak Period will end 60 days later on July 11, 2023. Impact on our COBRA and Consumer-Driven Healthplan (CDH) clients COBRA: During...
What are the benefits of a High-Deductible Health Plan and Health Savings Account (HDHP/HSA)? Lower premiums can be one of the most significant benefits of a High-Deductible Health Plan (HDHP). By offsetting the higher deductible, lower premiums can often save participants money in the long run. Another big benefit is the ability to partner an...
Stay Updated

Join us to stay on top of the latest healthcare news, legislation and product features from Ameriflex

We value your privacy
We will not rent or sell your information