Employers got a taste of the employer relevant rules under the Affordable Care Act (ACA) as the Treasury Department and the IRS collectively released final regulations regarding employer's shared responsibility. The regulations provide guidance subject to section 4980h, otherwise known as the "pay-or-play" provision. If you haven't had time to read and analyze the 227-page document, don't worry; we have the top three things employers need to know:
- Employers with 100 or more full-time equivalent employees failing to offer qualifying health coverage are subject to penalties in 2015; however, employers only need to offer coverage to at least 70% of those employees to escape liability.
- For purposes of calculating the assessable payment owed the final regulations temporarily increased the full-time employee exclusion from 30 to 80 full-time employees for 2015.
- Employers having between 50-99 full-time employees will not be subject to the penalties for failure to offer coverage until 2016 as long as the employer maintains, or does not materially reduce, the coverage offered as of February 9, 2014.
If you're still confused about these regulations or want to make sure your department is in compliance, stay tuned for more ACA updates from Pay News Now.