CHA News Article

IRS Releases Guidance on One-Year Delay in ACA Employer Coverage Requirement

The Internal Revenue Service (IRS) issued formal guidance this week on the delay of the Affordable Care Act (ACA) employer mandate requiring businesses with more than 50 employees to provide their employees with health insurance.The notice provides transition relief for 2014 from: 1) the information reporting requirements applicable to insurers, self-insuring employers and certain other providers of minimum essential coverage under §6055 of the Internal Revenue Code; 2) the information reporting requirements applicable to large employers under §6056; and 3) the employer shared responsi bility provisions under §4980H. The transition relief provides additional time for input from employers and other reporting entities in an effort to simplify reporting, consistent with effective implementation of the law.

The transition relief also is intended to provide employers, insurers and other providers of minimum essential coverage time to adapt their health coverage and reporting systems. According to the IRS, both the information reporting and the employer shared responsibility provisions will be fully effective for 2015. In preparation for that, once the information reporting rules have been issued, the IRS encourages employers and other reporting entities to voluntarily comply with the information reporting provisions for 2014. The transition relief through 2014 for the information reporting and employer shared responsibility provisions has no effect on the effective date or application of other ACA provisions. The complete IRS notice is attached.

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