Monday, February 10, 2014

Employer mandate delayed for 50-99 employers, some rules relaxed for larger companies

To link directly to the Scott Healthcare Reform Bulletin click here.

On Monday the IRS released the final rules regarding Shared responsibility for employers regarding health coverage.  Highlights from the final rules are:

-Employers with 50-99 full time employers do not have to comply with the employer mandate until 1/1/16.

-Employers with 100 full time employees or more will be required to comply in 2015, but based on these new final regulations will only have to offer coverage to 70% of full time employees in the first year.  The requirement will increase to the previously stated 95% in 2016.

-Clarification that the IRS will define a seasonal employee as "an employee in a position for which the customary annual employment is six months or less. The reference to customary means that by the nature of the position an employee in this position typically works for a period of six months or less, and that period should begin each calendar year in approximately the same part of the year, such as summer or winter".

-Provided additional details on the arrangements for temporary staffing agencies.

-The reporting requirements of section 6056 will apply to all employers over 50 employees beginning in 2015. Even to those between 50-99 who will not have to offer coverage.  

-Transition relief to non-calendar year plans was granted so that non-calendar year plans don't have to comply with the employer mandate until the start of their plan year in 2015.

For additional articles on the release follow the links below:

Washington Post

LifeHealthPRO

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