REPORTING REQUIREMENTS AND MANDATE PENALTIES FOR EMPLOYERS WITH 50+ FULL-TIME EMPLOYEES DELAYED UNTIL 2015.

On Tuesday, July 2, 2013, the Obama Administration announced that it will not begin enforcement of the “employer mandate” section of the Affordable Care Act (ACA) until 2015. According to the administration, the delay came after business owners expressed concerns about the complexity of the law’s reporting requirements. Details of the administrations announcement, summarized by a Treasury Department blog post, are as follows:

• Mandatory employer and insurer reporting requirements delayed until 2015. According to the blog post, this delay will allow the administration time to consider ways to simplify the new reporting requirements consistent with the law. In addition, the delay will give employers extra time to adapt to health coverage and reporting systems while they move towards affordable and accessible health coverage for employees.

• Employer shared responsibility (a.k.a. the employer mandate, or “pay or play” rules) tax penalties delayed until 2015.The requirement that businesses with 50 or more full-time equivalent employees provide their employees with health insurance or face fines ($2,000 per employee) will not be enforced until January 2015.

• The announcement does not affect employees’ access to the premium tax credits under the ACA.

• The announcement does not delay the individual mandate, which requires individuals who are currently without health insurance to obtain coverage effective January 1, 2014.

As always, HBE Becker Meyer Love LLP’s team of trusted advisors is here to help. Should you have any questions, please contact our office at (402) 423.4343.