ESRP meaning? Got conflicting info

Question:

What does ESRP stand for? Our HR director is showing me one thing; our CFO is showing me another.

Answer:

Its meaning depends on which government body your team members are checking with, because ESRP isn’t just any ACA acronym:

  • This is the ACA acronym with an added level of confusion.

declunkifying-esrp-acronym_acainsights-orgAccording to the Department of Health and Human Services at https://www.healthcare.gov/glossary/employer-shared-responsibility-payment, ESRP stands for Employer Shared Responsibility Payment – the term for a compliance payment, or tax penalty, that a business would risk if it does not offer any coverage or compliant coverage when it is required to.

But at https://www.irs.gov/affordable-care-act/affordable-care-act-tax-provisions#Tax Provisions for Employers, the government body that would levy and collect that payment (the IRS), tells us that ESRP stands for Employer Shared Responsibility Provisions – the term for the compliance rules, or tax rules, themselves.

Keep this disconnect in mind.

It’s not the first between the two federal agencies tasked with prime ACA responsibility. Remember, administration of this gargantuan law makes for an unprecedented exercise in intergovernmental coordination.

  • Many steps have yet to sync.
  • Until they do, steer clear of alphabet soup. Drill down for deeper meaning.

 

This Q&A was first published by ACA Insights' Helen Karakoudas on September 28, 2016 in a LinkedIn Pulse article titled "In the world of ACA compliance, every day should be Ask a Stupid Question Day."