Employer Mandate Tax Penalties and Mandatory Information Reporting Requirements Under Health Care Law Delayed Until 2015
For more than three
years, ABC has advocated for the repeal of the complex and costly employer
mandate included in the Affordable Care Act (ACA). On July 2, the Obama
Administration finally acknowledged employers' concerns about implementing the
burdensome requirements in a timely and effective manner. In a small step
forward, the Treasury Department
issued a blog post that announced
the following:
· Delay until 2015 the employer shared
responsibility (or employer mandate) tax penalties. Beginning in 2014, the ACA mandated that
employers with 50 or more full-time equivalent employees offer a certain level
of coverage or be subject to new taxes. According to the blog post, the
administration is extending transition relief for the employer shared
responsibility payments (under section 4980H). These payments will not apply
for 2014. Any employer shared responsibility payments will not apply until
2015.
· Delay until 2015 the mandatory employer and
insurer reporting requirements. The administration will provide an additional year before
the ACA mandatory employer and insurer reporting requirements begin.
-The ACA includes
information reporting (under section 6055) by insurers, self-insuring
employers, and other parties that provide health coverage. It also requires
information reporting (under section 6056) by certain employers with respect to
the health coverage offered to their full-time employees. The administration
expects to publish proposed rules implementing these provisions this summer,
after a dialogue with stakeholders.
-Once these rules have
been issued, the administration will work with employers, insurers, and other
reporting entities to strongly encourage them to voluntarily implement this
information reporting in 2014, in preparation for the full application of the
provisions in 2015.
(From ABC Federal
Affairs)
Trenton H. Cotney
Florida Bar Certified Construction Lawyer
Trent Cotney, P.A.
1211 N Franklin St
Tampa, FL 33602
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