The IRS has issued final regulations implementing the employer responsibility provisions under the Affordable Care Act (ACA) that take effect in 2015. Happily, there is an additional year of relief for mid-sized employers. For larger employers, there is some transitional relief in the percentage of full-time workers covered.

To clarify those employers affected by size:

Small business with fewer than 50 employees
Are NOT required to provide coverage or fill out any forms in 2015, or in any year, under the ACA.

Applicable large employers with 50 to 99 employees (mid-sized)
That do not yet provide quality, affordable health insurance to their full-time workers will report on their workers and coverage in 2015, but have until 2016 before the penalties could apply.

Applicable larger employers with 100 or more employees
Must offer coverage to at least 70% of the full-time workers in 2015 and it increases to 95% in 2016 and beyond. Employers in this category that do not meet these standards will make owe penalty payment for 2015.

For a look at the full version of the final regulations, see the IRS’ website:

Contact us if you have any questions about these new changes.

written by Patti Stoner Myers, CPA, Partner