Employers with an employee who has been determined eligible for an advanced premium tax credit (APTC) or cost-sharing reductions (CSR) through MNsure because the employee reported that their employer either:
This notice is mailed to the employer address provided by the employee. If an employer receives the notice at a location other than its legal headquarters, the employer is responsible for forwarding the notice to the contact in charge of compliance with employer shared responsibility.
If the employee listed on the notice enrolled in a qualified health plan with APTC, then the employer may have to pay an employer shared responsibility payment to the Department of the Treasury. (26 U.S.C. § 4980H). The IRS determines whether an employer is liable for a tax penalty under the employer shared responsibility provisions. MNsure does not determine the employment status of the employee or liability of the employer.
Though employers of any size can receive an employer notice, there are many situations in which an employee receives APTC and the employer is not liable for the tax penalty. For example, generally only large employers with at least 50 full-time or full-time equivalent employees might have to pay an employer shared responsibility payment for any month that at least one full-time employee enrolled in coverage through a health insurance marketplace and received APTC or CSR.
If you have questions about this notice, call the MNsure Contact Center at 651-539-2099 (855-366-7873 outside the Twin Cities) and reference "ESR."
The IRS provides information about the ACA provisions for employers, requirements for applicable large employers and the employer shared responsibility provision.
Employers who receive this notice have the right to appeal the employee's APTC eligibility determination with The Department of Health & Human Services Marketplace Appeals Center.
