The Affordable Care Act’s (ACA) shared responsibility effective date has been modified again. The provision requires applicable large employers to either offer affordable minimum essential health insurance coverage or face a penalty. The provision was originally scheduled to go into effect 1/1/14 but was previously delayed until 2015.
The IRS announced on February 10th that the requirement and related penalty will now be delayed further for some employers and phased-in for others. Below is a summary of the Treasury press release:
- Small businesses with fewer than 50 employees: Under the ACA, companies that have fewer than 50 employees are not required to provide coverage or fill out any forms in 2015, or in any year.
- Employers with 50 to 99 employees: Companies with 50-99 employees that do not yet provide quality, affordable health insurance to their full-time workers will report on their workers and coverage in 2015, but have until 2016 before any employer responsibility payments (penalty) could apply.
- Larger employers with 100 or more employees: The Regs phase in the percentage of full-time workers that employers need to offer coverage to from 70% in 2015 to 95% in 2016 and beyond. Employers in this category that do not meet these standards will need to make an employer responsibility payment (penalty) for 2015.
It is important to note that the individual mandate requiring individuals to have health insurance for 2014 was not modified in this most recent announcement.
Hertzbach and Company, P.A. is staying on top of the latest developments with the Affordable Care Act. Please contact us with any questions on how the ACA will affect your business.