Treasury Issues Final Rules With Phase-In of ACA's Employer Mandate

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Newly issued final rules under the Affordable Care Act provide an additional year for employers with 50 to 99 full-time workers to comply with shared employer responsibility provisions under tax code Section 4980H before they must pay fees for failing to offer affordable health care.
Beginning Jan. 1, 2015, only employers with 100 or more full-time equivalent employees must comply with the final rules (T.D. 9655) issued Feb. 10. The rules will apply to mid-sized businesses beginning Jan. 1, 2016, though they will still have reporting requirements in 2015, the rules said. A crucial condition for receiving the transition relief is that employers must certify that they have not laid off employees in order to come under the 100 employee threshold.
In July 2013, the Obama administration delayed several key provisions of the ACA law for one year, pushing back the Jan. 1, 2014, effective date of proposed rules (REG-138006-12) under Section 4980H on mandatory reporting requirements for employers and health insurers, as well as related employer shared-responsibility penalties under Section 6055 and 6056.

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