Tool Provides Estimates Only
The Taxpayer Advocate Service—an independent organization within the Internal Revenue Service (IRS)—has developed an Employer Shared Responsibility Provision Estimator tool to assist employers in understanding how the Affordable Care Act’s employer shared responsibility (“pay or play”) provisions work and how the provisions may apply to them.
Employers can use the tool to determine their:
- Number of full-time employees, including full-time equivalent employees (FTEs);
- Applicable large employer (ALE) status; and
- Estimated maximum amount of potential liability for the employer shared responsibility payment (“pay or play” penalty payment).
The tool provides estimates only. As a result, employers are advised to use it only as a guide to assist in making decisions regarding their tax situation.