Update: IRS to Send ACA Penalty Letters by End of Year
The employer mandate, sometimes known as the “play or pay” clause of the ACA, imposes penalties on Applicable Large Employers (ALEs) if any of their full-time employees purchases individual coverage at the Health Insurance Marketplace (also known as an Exchange) and receives a premium tax credit while doing so for any month in the calendar year, beginning in 2015.
On November 2, 2017, the IRS announced its program to notify employers of a potential penalty under this provision for calendar year 2015.