provisions begin in 2015; future rules will simplify reporting for businesses
WASHINGTON - Today,
the U.S. Department of the Treasury and the Internal Revenue Service (IRS)
issued final regulations implementing the employer responsibility provisions
under the Affordable Care Act (ACA) that take effect in 2015. In addition, final regulations will be issued shortly
that aim to substantially streamline employer reporting requirements for employers that offer highly
affordable coverage to all or virtually all of their full-time employees. The employer
responsibility rules assist employers affected by these policies in providing
quality, affordable coverage to their workers. If employers decide not to offer
insurance to their employees, they will make an employer shared responsibility
beginning in 2015 to help offset the costs to taxpayers of their employees
getting tax credits through the Health Insurance Marketplace.
about 96 percent of employers are not subject to the employer responsibility
provision, for those employers that are, we will continue to make the compliance
process simpler and easier to navigate,” said Assistant Secretary for Tax
Policy Mark J. Mazur. “Today’s final
regulations phase in the standards to ensure that larger employers either offer
quality, affordable coverage or make an employer responsibility payment
starting in 2015 to help offset the cost to taxpayers of coverage or subsidies
to their employees.”
final rules issued today implement the employer shared responsibility
provisions of the ACA, under section 4980H of the Internal Revenue Code. The rules make a number of commonsense improvements
in response to input on the proposed regulations issued in December 2012.
of today’s rules include addressing a number of questions about how plans can
comply with the employer shared responsibility provisions; ensuring that
volunteers such as firefighters and emergency responders do not count as
full-time employees; and phasing in provisions for businesses with 50 to 99
full-time employees and those that offer coverage to most but not yet all of
their full-time workers.
the policy affects employers:
with fewer than 50 employees: (about 96% of all employers): Under the
Affordable Care Act, companies that have fewer than 50 employees are not
required to provide coverage or fill out any forms in 2015, or in any year,
under the Affordable Care Act.
with 100 or more employees (about 2% of employers): The overwhelming
majority of these companies with 100 or more employees already offer quality
coverage. Today’s rules phase in the percentage
of full-time workers that employers need to offer coverage to from 70 percent
in 2015 to 95 percent in 2016 and beyond. Employers in this category that do
not meet these standards will make an employer responsibility payment for 2015.
50 to 99 employees (about 2% of employers): 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 could apply.
more information, see the fact sheet here
and the final rule here.