Question: We’re a large employer subject to the ACA. A full-time employee on non-FMLA leave has stopped paying his health premiums. Can we cancel his coverage without triggering ACA penalties?

A: The path to avoiding ACA penalties here should look familiar for employers subject to COBRA, says benefits attorney Lyndsey R. Barnett (lbarnett@graydon.com) of the firm Graydon Head & Ritchey LLP.

IRS treats an employer as having still made an offer of coverage to a full-time employee if coverage terminates because the…

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