By - April 18, 2018

Still Think the ACA Was Repealed in 2017?

Still Wondering if the ACA Was Repealed?

Here’s what you need to know

Now that we are past the deadline for employers to submit their 2017 ACA compliance reports to the IRS, we can reflect on the last year to see what changed for employers on the ACA front. The biggest myth still out there is that the ACA was repealed.

When we started 2017…

ACA transition relief had expired for employers and the “Cadillac Tax” was still a couple of years off, but all other aspects of the ACA were in full effect for employers.  The IRS was working to get their systems updated to generate employer ACA penalty notices in the form of Letter 226J.

Then came the 2017 legislative cycle…

Congress devoted spring and summer of 2017 to the American Health Care Act (AHCA), which promised to roll back much of the ACA burden on employers.  That bill failed in the Senate when it didn’t receive the 50 votes that were needed.  Following the failure of the AHCA, the focus turned to tax cuts.  The Tax Cuts & Jobs Act took center stage in the fall teasing “ACA Repeal” and was passed and signed into law.

Here’s what aspects of the ACA actually changed with the Tax Cuts & Jobs Act:

  • The “Cadillac Tax” has been pushed off from 2020 to 2022
  • Starting in 2019, individuals are still required by law to have health insurance, but the penalty for violating that law is $0.
  • Also, in the fall of 2017, the IRS started sending out Letter 226J alerting employers to their ACA penalty exposure for Tax Year 2015.

Not much has changed with the ACA

If you’d gone to sleep last year – Rip Van Winkle-style and woken up today, you would have missed a lot of drama but nothing has changed with regard to employer ACA responsibilities…

The “Cadillac Tax” is still a couple of years off and all other aspects of the ACA are still in full effect for employers.  Employers have now started receiving IRS Letter 226J for 2015 and letters for 2016 are likely not far behind.

From what we’ve been hearing, many employers who were distracted by the headlines that the ACA had been “repealed”, fell behind on their ACA reporting obligations and are scrambling to get their filings in.  At Tango we are proud to announce that for the third year in a row all of our customers were filed on time with the IRS.

See our infographic to learn more: The Truth About the ACA— Not Much Has Changed

Learn more about ACA penalties.

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