The Law Office of Diana Macias Valdez - Employment Law Newsflash: Obamacare Update

Employment Law Newsflash: Obamacare Update



The United States Department of the Treasury issued its long anticipated final regulations regarding the employer shared responsibility provisions ("Employer Mandate") under the Affordable Care Act: https://s3.amazonaws.com/public-inspection.federalregister.gov/2014-03082.pdf.

Under the final regulations, please be advised that mid-sized companies with the equivalent of 50 to 99 full-time employees have been given a one year extension to comply with the mandate. Companies who qualify will now have until 2016 to offer affordable insurance coverage to full-time employees. The extension was prompted in an effort to help mid-size companies obtain affordable coverage in light of the technical glitches with the government's health insurance marketplace (healthcare.gov).

**Please note that the Department of the Treasury has advised that beginning on February 9, 2014 and ending on Dec. 31, 2014, employers may not reduce the size of their workforce or the overall hours of service of employees to come below 100 employees in order to qualify for this transition relief. However, an employer that reduces workforce size or overall hours of service for bona fide business reasons will be eligible for this relief.

It was also announced that larger companies with the equivalent of 100 full-time employees or more will only have to offer affordable insurance coverage to 70% of full-time employees in 2015, rather than the initial 95% requirement. The higher threshold of 95% will be required in 2016.

For questions on the application of the Employer Mandate, the IRS has issued the following Q & A for employers: http://www.irs.gov/uac/Newsroom/Questions-and-Answers-on-Employer-Shared-Responsibility-Provisions-Under-the-Affordable-Care-Act.

Copyright © 2022 The Law Office of Diana Macias Valdez PLLC / All rights reserved. | Admin Login