The Affordable Care Act is still a concern during an M&A transaction. In this podcast, Jim Paul explains why.
The Affordable Care Act is still out there. Penalties for individuals were repealed, but employer penalties are still in effect. The IRS has started sending out letters for 2015 and we’ve seen some very large proposed assessments with six-figure penalties.
So if you’re representing buyers or sellers in mergers and acquisitions, here are a couple of things to keep in mind:
- First, confirm how reporting will be handled for the year of the acquisition and beyond.
- Second, make sure you get answer to these questions during due diligence:
- How was employee eligibility determined for prior years?
- Was proper health coverage offered to eligible employees as required?
- Has proper reporting been done?
Buyers may need to respond to penalty notices for prior years, and all parties will want to make sure that proper data and documentation is maintained. We can help with compliance questions and due diligence.
This podcast is for general information purposes only. It does not create an attorney-client relationship between the Employee Benefits Law Group and the listener or reader and it does not constitute legal advice for a specific situation. If you need specific guidance on this topic, let’s start a conversation.