On July 2nd, the Treasury Department announced it would delay the requirement for businesses with more than 50 employees to provide health insurance or pay a penalty until 2015. Hence, the so called "play or pay" mandate. The Affordable Care Act employer shared responsibility payments were to take effect in 2014. The postponement serves two purposes: to streamline reporting and give employers more time to comply with the regulations.
The Treasury Department is working to create and publish rules to fullfil the information reporting requirement with respect to health insurance and full or part-time status of employees. Information reporting will be voluntary for businesses in 2014 and kinks in the system can be addressed before the full implementation in 2015. For employers that easily meet the new standards, detailed reporting may be unnecessary and inefficient. The goal will be to simplify the reporting regulations for employers that already meet the requirements while creating a reporting method that can accurately track those newly complying with the law.
If you employ more than 50 employees and offer affordable, quality healthcare, you may voluntarily report your company data in 2014 in preparation for the 2015 reporting requirement.
If you employ less than 50 employees the employer shared responsibility laws do not affect you.
If you employ more than 50 employees and currently do not offer affordable, quality healthcare, you have more time to make decisions regarding the health insurance mandate. You have the opportunity to evaluate healthcare options to become compliant and/or determine the penalty impact if you choose not to offer health insurance.
If you have questions about the tax implications or how this affects you and your business, do not hesitate to contact us at: 615-244-3991.
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