IRS Releases Proposed ACA Rules on Employer Shared Responsibility

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IRS proposes long-awaited regulations (REG-138006-12) on the shared responsibility provisions under the Affordable Care Act on employer-provided health coverage. Starting in 2014, tax code Section 4980H, added by ACA, will require employers with at least 50 full-time and/or full-time equivalent employees to offer affordable health care coverage that provides a minimum level of coverage, or pay a penalty. According to Section 4980H, an employee is considered to be full time if he or she works at least 30 hours per week, and the proposed regulations “would treat 130 hours of service in a calendar month as the monthly equivalent of 30 hours of service per week.”

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