ACA Employer Mandate Delayed

Mid-sized (51-100 ee's) employer mandate delayed until 2016

On Feb. 12, 2014, the IRS published final regulations on the ACA's employer shared responsibility rules. Under the final regulations, applicable large employers that have fewer than 100 full-time employees generally will have an additional year, until 2016, to comply with the pay or play rules This Health Care Reform Bulletin provides an overview of the delay.

The Affordable Care Act (ACA) imposes a penalty on applicable large employers (ALEs) that do not offer minimum essential coverage to full-time employees and their dependents. ALEs that offer coverage may still be liable for a penalty if the coverage is unaffordable or does not provide minimum value. This provision is often referred to as the "employer shared responsibility or "pay or play rules.

Under the final regulations, applicable large employers that have fewer than 100 full-time employees (including full-time equivalent employees, or FTEs) generally will have an additional year, until 2016, to comply with the pay or play rules. ALEs with 100 or more full-time employees (including FTEs) must comply with the pay or play rules starting in 2015.

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