Employer mandate will not be effective till 1.1.2015 rather than 2014!
ACA Employer Mandate Delayed Further for Some Employers
On Monday, February 10, 2014, the U.S. Treasury Department and IRS announced final regulations on the Affordable Care Act’s (ACA) Employer Shared Responsibility containing some very important compliance changes and clarification, including:
- Employers with 50 to 99 full-time or full-time equivalent employees will have until 2016 to offer coverage to their full-time employees or pay an employer penalty, if they certify they are not cutting positions to avoid the mandate.
- 100+ employers must offer ACA-defined affordable coverage with minimum value to 70% of their full-time employees in 2015, rather than the proposed requirement of 95% (all but the greater of 5% or 5 employees). The 95% requirement will apply in 2016.
- Seasonal employees in positions for which the customary annual employment is six months or less generally will not be considered full-time.
- Large employers are not required to provide coverage to their full-time employees’ dependents in 2015 if they are taking steps to arrange for dependent coverage to begin in 2016.
Click here to review the U.S. Treasury Fact Sheet (This is an excellent summary document with valuable information not covered in many news reports.)
Click here to read the U.S. Treasury and IRS Press Release.
Click here for the updated IRS FAQs on Employer Shared Responsibility. Word & Brown 2.11.2014 Email