Health-care compliance deadline for large employers extended

From SAF:

Industry members with more than 50 employees can breathe a sigh of relief: In a major victory for employers who have struggled to understand their responsibilities under the Affordable Care Act (ACA), the Obama Administration announced on Tuesday it has delayed until 2015 the requirement that large employers provide health insurance to their workers or pay a penalty.

The ACA originally required large employers – those with 50 or more full-time equivalent employees – to report to the Internal Revenue Service by January 31, 2015, about the coverage they offer to full-time employees in 2014. Instead, the IRS will use 2014 as a transition year and push back to January 31, 2016, the requirement to report data on coverage offered to employees in 2015.

“This is a significant win for SAF members,” said SAF CEO Peter Moran. “It also shows the power of SAF’s daily effort to represent the floral industry on Capitol Hill and the influence SAF members really do have when they attend Congressional Action Days.”

SAF has argued aggressively for more flexibility for employers as the law is implemented and has been an active participant in coalition efforts to suggest changes to the law that help employers comply.

While the delay of the employer mandate is a positive development, several aspects of the law remain on track for January 1, 2014. Most importantly for floral industry businesses, individual owners and employees are still responsible for obtaining coverage for themselves and dependent children up to age 26 to avoid penalties under the law's individual mandate. Additionally, the October 1, 2013, deadline to provide employees with notification of the state-based exchange remains.

Employers with fewer than 50 full-time equivalent employees are not required to offer coverage under the ACA.

The Administration will publish formal guidance within the next week describing the transition. After meeting with employers, the Administration also plans to publish proposed rules implementing reporting requirements this summer.

For more details on the ACA and your responsibilities, visit the SAF Health Care Resource Center, check out the most recent SAF Webinar on the topic, or contact SAF’s Corey Connors at cconnors@safnow.org.