This week, the Internal Revenue Service issued final regulations under the Employer Shared Responsibility (aka “employer mandate”) provisions of the Affordable Care Act. The employer mandate calls for employers to offer health insurance to employees or pay penalties. The news this week pushes back the employer mandate deadline for not-so-large employers and eases health insurance coverage rules for large employers.
The official regulations and their preamble are quite lengthy (227 pages). However, the Treasury Department also posted a concise summary of the regulations in a three-page “Fact Sheet.”
The final regulations contain some additional transitional relief:
1) The employer employs, on average, fewer than 100 full-time employees on business days in 2014.
2) From February 9, 2014, through December 31, 2014, the employer does not reduce the size of its workforce, or the overall hours of service of its employees, to meet the less than 100 count.
3) Through the end plan year that commences in 2015, the employer does not eliminate or materially reduce coverage that is offered as of February 9, 2014. The regulations provide guidance as to what would be considered a material reduction.
4) The employer certifies that it meets the above conditions in a form to be released later.
Check back to the Steal These Ideas blog for additional information about the final regulations.
DISCLAIMER: We hope this blog post gave you an "Aha!" moment, but please don't hold it as legal or tax advice. This information is general in nature, and your specific situation deserves attention from a dedicated legal or tax advisor.