On February 10th, final regulations were set to ensure that applicable employers provide quality, affordable coverage to employees under the Affordable Care Act, which will take effect in January 2015. A streamlined process is expected to follow for further guidance on complying with employer information reporting.
Employers who choose not to offer insurance will be required to make an employer shared responsibility payment to offset the costs to taxpayers of coverage or subsidies to their employees.
Important notes for employers not currently providing affordable, quality health insurance:
Employers with less than 50 employees – Not currently required to provide coverage
Employer with 50-99 full-time employees – Required to report on coverage and employees in 2015. Employer responsibility payments may be required in 2016.
Employers with 100 or more full-time employees – Required to offer coverage to 70 percent of full-time employees in 2015 and 95 percent in 2016, or otherwise make an employer responsibility payment.
View the Fact Sheet and Final Rule for more details and responses to concerns about the proposed regulations in December 2012.
Other Resources:
- Bullard Law: “Play or Pay” Mandate Delayed Again For Some Employers
- SHRM: Health Care Law’s Employer Mandate Delayed
- Treasury and IRS Issue Final Regulations Implementing Employer Shared Responsibility Under the Affordable Care Act for 2015