Tuesday, July 2, 2013, the Obama Administration announced that it will delay the mandatory insurer and employer reporting requirements under the Affordable Care Act (ACA) until 2015. This transitional relief will make it impractical to determine which employers should be subject to penalties under the Employer Shared Responsibility Mandate (a/k/a “Pay or Play”) provisions of the ACA; therefore, the Administration has also extended the effective date for penalties to 2015 as well. This will give employers some “breathing room” while they continue to prepare to comply with ACA requirements to offer affordable coverage to eligible full-time employees.
What Does the Delay Do?
What Doesn’t the Delay Do?
What are Some Issues After the Pay or Play Delay?
What Should Employers Do Now?
The Obama Administration’s announcement of a one year period of transitional relief for employer reporting and potential penalty payments under the ACA for Pay or Play compliance provides an opportunity for employers to continue their compliance efforts. It also allows employers to prepare group health plan amendments and employee communications under a less restrictive time deadline. Employers should continue their compliance efforts to be ready and comfortable with information reporting, record maintenance and full ACA implementation in 2015.
This article is provided for general informational purposes only and should not be construed as legal advice or legal opinion on any specific facts or circumstances. You are urged to consult a lawyer concerning any specific legal questions you may have.
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