The Affordable Care Act requires that all employers with more than 50 full-time workers provide health insurance or face potential penalties. On July 9, the Department of Treasury and the IRS issued a Notice announcing transition relief for 2014 related to the Employer Mandate and Information Reporting requirements. The Notice also confirms that proposed rules for the Information Reporting provisions under sections 6055 and 6056 of the Internal Revenue Code will be published this summer and will reflect the transition relief for 2014.
This means that employers will not be subject to federal penalties for not providing qualified health insurance in 2014 and delays enforcement of the Employer Mandate until 2015. The Department announced it will postpone the provision after hearing concerns from employers about implementation challenges. According to Treasury, this will help meet two goals:
Allow time to simplify the new reporting requirements
Provide time to adapt health coverage and reporting systems
We will share additional information regarding changes to the mandate's implementation and associated reporting requirements as information becomes available.