IRS Issues Proposed Regulations on Employer Shared Responsibility

The IRS has released proposed regulations explaining employer duties under the ACA. The regulations apply to employers who have more than 50 full-time employees or equivalents. Such employers may have to pay penalties if they do not offer affordable coverage to their employees.

In part, the regulations explain how the ACA affects employers. For example, they explain how to count full-time employees. The regulations provide sufficient detail that employers can begin to plan for 2014.

The IRS has established a new safe harbor for minor lapses in coverage. An employer offering affordable coverage generally will not violate the Act if it covers at least 95% of its employees. The IRS has also included rules that will make complying easier for employers who previously provided insurance for their employees. Similarly, the IRS will provide relief for employers who are close to the 50 full-time employee threshold.

Detailed information will become available at under Legal Articles and Information.

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