Health Care Reform Update: Delays for the Employer Mandate
On February 10, the IRS published final regulations on the Employer Responsibility (Pay or Play) mandate. The final regulations give smaller employers more time to comply and provide more lenient rules for larger employers in 2015. Employers with fewer than 50 employees are exempt from the mandate.
Delay for employers with 50-99 employees:
- Employers with 50-99 full-time employees have until their renewal date in 2016 to comply with the mandate.
Transition Relief for Employers with 100 or more employees:
- Employers with 100 or more full-time employees will not be subject to the $2,000 per employee penalty if they offer coverage to at least 70% of employees and their dependents in 2015. Upon renewal in 2016, employers must offer coverage to at least 95% of employees (and dependents) or be liable for a penalty.
In addition to the delays, the regulations finalize the provisions included in the employer mandate, including how to calculate the number of FTEs to determine employer size, how to determine if a variable hour employee should be considered full-time, and how to ensure the coverage offered to employees is affordable.
Watch for future articles with more information on the mandate and updated employer tools to help you plan.
Read the final regulations | Questions and Answers from the IRS