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IMPORTANT: Employer Reporting and Shared Responsibility Requirements Delayed

Late yesterday afternoon, the U.S. Department of the Treasury announced that the employer mandate will be delayed until 2015. According to the release, the delay is a response to employer concerns about the complexity of the requirements and the short time frame for compliance. This means that in 2014, companies with more than 50 (full-time equivalent) employees will not pay the $2,000 penalty for failure to offer benefits to workers averaging at least 30 hours per week. Additionally, there will be no penalty assessed for failure to comply with the rules for minimum essential coverage and minimum value.

 

Where do we go from here? According to the release, formal guidance will be published next week. Later this summer, the IRS will publish proposed rules for implementing the reporting provisions. We'll know much more when that occurs and how it will impact any recommendations and/or decisions already in the works for 2014.

               

BSG will continue to monitor events. Please contact your BSG representative with questions.

 

Click here to read the U.S. Department of the Treasury's release. 

 

The preceding is not intended to be and is not offered as legal advice. We are prohibited from the practice of law. Compliance is the responsibility of the employer or Plan sponsor and affected employees who should seek their own legal counsel regarding questions about information presented in this news alert. Copyright© 2013
The Benefit Services Group, Inc.
BSG® is  a registered trademark of The Benefit Services Group, Inc.

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