ACA Responsibility Payments, Mandatory Employer and Insurer Requirements Delayed

more+
less-

EmpBlog-7.18.2013-ExpectDelaysThose of you just arriving on the planet may have heard a little something about the Affordable Care Act and the fact that it has a lot of folks worried about just how it will all work.  Well, apparently these concerns have been heard, at least to some extent, in Washington.

The Treasury Department recently announced that certain employer and insurer reporting requirements under the ACA would not be implemented until 2015.  Specifically, 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 employers and insurers.  The intent of the delay is to “minimize the reporting, consistent with effective implementation of the law” and provide time for employers and others to adapt.

The big news is that, absent fulfillment of the reporting requirements, it would be impractical to determine responsibility payments (under section 4980H) for 2014.  As a result, these health care reform “pay-or-play” penalties for employers that were set to take effect in 2014 will also be delayed until 2015.

The announcement states that other provisions of the ACA, such as employee access to premium tax credits, will not be affected, and strongly encourages employers to maintain or expand health coverage in 2014.

Written by:

Published In:

Tax

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Ervin Cohen & Jessup LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.
×
Loading...
×
×