Key Takeaways
- A company with more than 200 employees faced significant Affordable Care Act (ACA) compliance issues.
- Because of those issues, the IRS handed down a $200,000 fine for non-compliance.
- LewerBenefits partnered with the company and an ACA compliance specialist to audit the issues, resolve them, and avoid the fine.
The Challenge
A company in the energy sector with more than 200 employees faced significant Affordable Care Act (ACA) compliance issues. They were inconsistently tracking variable-hour employees, had fallen behind on required ACA and IRS filings, and ultimately received a hefty $200,000 IRS penalty.
Lack of HR and dedicated payroll staff, compounded by limited compliance resources, made it difficult for the company to identify and address the underlying issues on their own.
The Solution
LewerBenefits partnered with the company and trusted ACA compliance specialists to conduct a comprehensive audit of the business’s compliance and payroll reports. Together, we:
- Audited historical ACA reporting and filings
- Reviewed variable-hour employee tracking processes
- Corrected reporting deficiencies
- Submitted all required filings to the IRS
- Coordinated a response to the IRS penalty assessment
- Developed and implemented a plan to maintain ongoing compliance
We also connected the company with a preferred payroll partner to ensure future reporting would be accurate, timely, and fully aligned with IRS requirements. This helped free up critical time needed for other business operations.
The Outcome
By partnering with LewerBenefits and our preferred compliance and payroll specialists, the company gained access to the dedicated resources, proven processes, and ongoing support they needed to overcome compliance issues. As a result, they were able to avoid the $200,000 IRS penalty.
Today, the organization follows a sustainable approach to employee-hour tracking, ACA reporting and oversight, and IRS filing requirements.
What started as a costly compliance oversight became an opportunity to establish robust compliance processes and protect the company’s bottom line.
We’d love to help you with your benefits compliance, too! Let’s discuss what a partnership with LewerBenefits can do for your business.
