Employer Shared Responsibility Payment

Employer Shared Responsibility Payment (ESRP)

Certain employers, under the Affordable Care Act's (ACA) employer shared responsibility provisions, must provide minimum essential coverage to their full-time employees and their dependents. Minimum essential coverage offered to full-time employees must provide "minimum value" and be considered "affordable." Otherwise, employers may receive a notice (Letter 226J) to make an Employer Shared Responsibility Payment (ESRP) to the IRS.

Employers Subject to ACA Employer Shared Responsibility Provisions

Applicable Large Employers, or ALEs, are subject to the employer shared responsibility provisions. An employer must have had an average of at least 50 full-time employees during the preceding calendar year to be considered an ALE during the current calendar year.

How Merit Tax Group Can Help

Merit Tax Group has the expertise to assist employers in determining whether they meet the ALE threshold, as well as respond to ESRP notices received from the IRS.

Merit Tax Group also helps employers with ESRP liability set-up IRS payment plans, so they can continue to focus on what they do best with peace of mind.