Under the Affordable Care Act (ACA), each Exchange is required to send a notice (Section 1411 Certification) to employers regarding any employees who received subsidies to purchase Exchange coverage. These notices will be sent to all employers with employees who received subsidized coverage. This includes employers that are not applicable large employers (ALEs), as well as ALEs that are subject to the ACA’s employer shared responsibility rules. Therefore, regardless of ALE status, be aware that these notices may arrive. Receipt of a Section 1411 Certification is not a pay or play penalty assessment against the employer. The IRS will independently determine whether an ALE is liable for any pay or play penalties.