The Taxpayer Advocate Service is pleased to announce a new tool designed to help employers better understand how the Employer Shared Responsibility Provision (ESRP) works and learn how the provision may apply to them.
If you are an employer, you can use this ESRP Estimator to determine:
- The number of your full-time employees, including full-time equivalent employees (FTEs),
- Whether you might be an applicable large employer (ALE), and
- If you are an ALE, an estimate of the maximum amount of the potential liability for the employer shared responsibility payment that could apply to you based on the number of FTEs that you report if you fail to offer coverage to your full-time employees.
Please note that this tool will only help provide the above information for the tax year 2016 and forward. Due to the various Transition Relief rules applicable in 2015, this tool cannot be used for tax year 2015. For information about these rules and how to determine the payment for 2015, see the ESRP Regulations.
The estimator will also not report a payment estimate to the IRS or interact with your tax return or tax account information. It is intended only as a guide to help you understand the ESRP.
It even provides you with definitions of key terms, links to the actual regulations and offers real-life examples and detailed instructions to assist you with using the tool.
So try our ESRP Estimator, anytime, to help you understand whether you are considered an ALE and if you might be liable for a payment. It could help you plan better and possibly avoid a payment later. You can also use it anytime you have employee changes to see if that change will affect your employer status under the ESRP provisions, so you won’t be surprised later.
Need help with other understanding or estimating other ACA related payments or credits? Visit our Affordable Care Act page and try our other three estimator tools; Individual Shared Responsibility Estimator, Premium Tax Credit Change Estimator and the Small Business Heath Care Tax Credit Estimator.