On Monday, February 10, The U.S. Department of the Treasury and the Internal Revenue Service issued final regulations implementing the employer responsibility provisions under the Affordable Care Act (ACA) that take effect in 2015.
However, the final provisions issued further delayed the employer mandate for those employers with between 50 and 99 full time equivalent employees. Previously, an employer shared responsibility payment would have been required for employers in this category, if they did not provide health coverage to their full time employees in 2015. However, they are now relieved of that obligation until 2016.
Furthermore, for firms with 100 or more full time equivalent employees, previously they were required to provide coverage to at least 95% of their full time employees in 2015 or face a shared responsibility payment. Under this new regulation, they are now required to provide it to at least 70% of their full time employees in 2015 increasing to the 95% level in 2016.
In the news release there was also mention of streamlining the reporting requirements for employers offering coverage. The specific regulations for those streamlined reporting requirements are supposed to be released “shortly.”
For more information, please review the official press release from the Treasury.
Under U.S. Treasury Department guidelines, we hereby inform you that any tax advice contained in this communication is not intended or written to be used, and cannot be used by you for the purpose of avoiding penalties that may be imposed on you by the Internal Revenue Service, or for the purpose of promoting, marketing or recommending to another party any transaction or matter addressed within this tax advice. Further, RubinBrown LLP imposes no limitation on any recipient of this tax advice on the disclosure of the tax treatment or tax strategies or tax structuring described herein.
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