If you are an employer scrambling to bring your business into compliance with the “pay or play” provisions of the Affordable Care Act (“ACA”) by the January 1, 2014 deadline, there is a bit of good news. On July 2, 2013, the U.S. Treasury Department announced it is extending transition relief for one year to those employers who are required to make shared responsibility payments under the ACA.
The ACA contains a shared responsibility requirement that mandates applicable large employers provide affordable minimum essential health care coverage to substantially all of its full-time employees.
Under the ACA, applicable large employers have two options: either provide affordable minimum essential health care coverage or pay a penalty. To date, employers have been concerned about the fast approaching deadline to comply. Citing the complexity of regulations and business concerns, the Treasury Department decided to provide applicable large employers with an additional year to plan.
The enforcement date to comply with the “pay or play” provision of the ACA is now January 1, 2015.
A word of caution: Although applicable large employers will not be assessed a penalty in 2014, they should use the transitional period wisely and plan for compliance in 2015. The delay in enforcement does not alter any other ACA deadlines or rules and does not signal a potential repeal of the ACA. This is simply a one-year reprieve for employers (and government agencies) to fully prepare for the implementation of the “pay or play” provisions of the ACA.
The Treasury Department indicated that it will issue formal guidance regarding the transitional period in the next few days.
If you would like to know more about your business obligations under the ACA or during the transition period, please contact a member of Gunster’s employment law practice at 561-655-1980.
Watch a related video: Keith Sonderling, an attorney in Gunster’s labor & employment law practice, spoke to thelaw.tv recently about this issue:
Or watch the video on thelaw.tv website: Why your business shouldn’t put off Obamacare (8/12/13)
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This publication is for general information only. It is not legal advice, and legal counsel should be contacted before any action is taken that might be influenced by this publication. Established in 1925, Gunster is one of Florida’s oldest and largest full-service law firms. The firm’s clients include international, national and local businesses, institutions, local governments and prominent individuals. Gunster maintains its presence in Florida with offices in Fort Lauderdale, Jacksonville, Miami, Orlando, Palm Beach, Stuart, Tallahassee, Tampa, The Florida Keys, Vero Beach and its headquarters in West Palm Beach. Gunster is home to more than 150 attorneys and 200 committed support staff, providing counsel to clients through 18 practice groups including banking & financial services; business litigation; construction; corporate; environmental & land use; government affairs; health care; immigration; international; labor & employment; leisure & resorts; private wealth services; probate, trust & guardianship litigation; professional malpractice; real estate; securities and corporate governance; tax; and technology & entrepreneurial companies. Gunster is ranked among the National Law Journal’s list of the 350 largest law firms. |
