H&W: Delay of Employer Shared Responsibility Provisions

IRS Notice on Delay of Employer Shared Responsibility Provisions: On July 9, 2013, the IRS issued Notice 2013-45, which confirmed a prior announcement by the Administration delaying the effective date of certain reporting provisions of the ACA.  As a consequence, no employer shared responsibility payments will be assessed in 2014. The notice provided additional information about this transition relief:

• Under the ACA, insurers and self-insured employers must report certain information (Section 6055) and applicable large employers must report information about health coverage provided to full-time employees (Section 6056). Proposed rules for these reporting provisions are expected to be published this summer.
• Complying with these reporting provisions is optional in 2014; however, insurers and employers are encouraged to voluntarily comply with these provisions for 2014 in preparation for their full application in 2015.
• Because this reporting information is necessary for the IRS to determine what employers are subject to a penalty under the Employer Shared Responsibility Provisions, no penalties will be assessed for 2014.  These provisions will apply in 2015.
• This transition relief does not affect the individual shared responsibility requirements of the ACA or an employee’s access to the premium tax credit.
• This notice provides transition relief only for the reporting requirements in Sections 6055 and 6056 and the Employer Shared Responsibility Provisions. It has no effect on other effective dates associated with the ACA.

Compliancedashboard will be updated when the reporting rules are released.