Health Care Law Employer Penalties Delayed One Year

July 3, 2013

pic-healthOn July 2, the Obama administration announced that it will provide an additional year before the Patient Protection and Affordable Care Act (PPACA) mandatory employer and insurer reporting requirements begin.

“This is designed to meet two goals.  First, it will allow us to consider ways to simplify the new reporting requirements consistent with the law.  Second, it will provide time to adapt health coverage and reporting systems while employers are moving toward making health coverage affordable and accessible for their employees.  Within the next week, we will publish formal guidance describing this transition,” according to a Treasury Department blog posted by Assistant Secretary for Tax Policy Mark J. Mazur.

“Accordingly, we are extending this transition relief to the employer shared responsibility payments.  These payments will not apply for 2014.  Any employer shared responsibility payments will not apply until 2015. During this 2014 transition period, we strongly encourage employers to maintain or expand health coverage.  Also, our actions today do not affect employees’ access to the premium tax credits available under the ACA (nor any other provision of the ACA),” Mazur wrote.

NSBA welcomes the announcement.  This will provide more time for businesses to grapple with the complex requirements of the PPACA and to have a reasonable period of time to consider their health care alternatives.

The employer shared responsibility requirements and penalties affect employers with 50 or more full time employees (including full time equivalents).

The Internal Revenue Service (IRS) has not yet issued a formal notice or proposed rule.

To read the Treasury Department blog by Assistant Secretary for Tax Policy Mark J. Mazur, effectively making the announcement, click here.

To read the White House blog on the announcement, click here.