Compliance News

  • IRS Issuing 1094-C/1095-C Penalties

    Alert: IRS Issuing Penalties to Employers who Fail to Distribute 1095-C Forms to Employees and who Fail to File 1094/1095-C Forms with the IRS

    While IRC 4980H penalties for not offering required ACA health coverage remain in effect, the IRS is beginning to send employers a new set of penalties.

    The final days of 2018 have seen the IRS begin assessing penalties to employers who have failed to file forms 1094/1095-C with the IRS timelyand accurately, or who have failed to provide 1095-C forms to employees. These penalties are being administered under IRC 6721/6722 and this is the first year the IRS has begun issuing such penalties.

    The proposed penalty assessments for failing to file (or filing incorrectly) the 1094-1095-C forms, or for failing to provide employees with the 1095-C form, are indexed each tax year. The following link highlights the IRS’ penalty rates and, as you can see, the penalties can be quite high.

    ESC seeks to keep its clients aware of the penalties and risks concerning important compliance updates. While there hasn’t been a large number of penalty assessments under IRC 6721/6722 to date, we think it is prudent to understand the risks surrounding this penalty, and to speak with your own tax attorney or CPA in helping you to avoid receiving a potential, and costly, IRS assessment.

    This message is for informational purposes and is intended to provide our clients with important compliance updates.


  • ERISA Compliance Webinar Replay

    ERISA reporting and employee disclosure violations can add up quickly. ERISA compliance is not an option, it is the law, and failure to comply can generate thousands in penalties!

    On Thursday, September 20, 2018 ESC hosted our trusted partner myHRcounsel for a webinar to discuss ERISA compliance, penalties, and the benefits of SPD “Wrap” documents.

    Many employers rely on their broker or plan administrator to provide the necessary ERISA disclosures to plan enrollees. While ESC provides ERISA-compliant disclosures to employees enrolled in any of the products we offer, this is often not the case with other health and welfare benefit providers. If you offer benefits to internal or temporary employees other than those provided by ESC, you will not want to miss this free webinar.


    ESC partner myHRcounsel is a law firm specializing in employment law including issues related to ERISA and ACA compliance. This free webinar will explain your staffing company’s responsibilities under ERISA, and provide a quick overview of the legal and compliance services myHRcounsel has developed for staffing companies (and deeply discounted for ESC clients!).


    Click here to watch a replay of the ERISA Compliance Webinar or click here for more information about myHRcounsel’s services which have been significantly discounted for ESC clients.

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