On Monday, Feb. 10, 2014, the IRS announced it is delaying a portion of the employer mandate associated with the Affordable Care Act or Obamacare. The delay applies to employers with 50-99 workers. These employers will have until 2016 before facing a penalty for failing to cover employees. Businesses with fewer than 50 workers are exempt from the employer responsibility provisions.

A few important considerations:

• Those claiming a 2015 exemption are required to certify under penalty of perjury that they did not reduce their workforce to fewer than 100 employees in order to qualify.
• Employers will be required to report how many employees they cover.
• The IRS is still in the midst of finalizing reporting requirements.

Additional Resources

Shared Responsibility for Employers Regarding Health Coverage, Federal Register

Questions and Answers on Employer Shared Responsibility Provisions Under the Affordable Care Act, Internal Revenue Service

Alert - Final Employer Shared Responsibility Regulations Issued, Plante Moran

Treasury and IRS Issue Final Employer Mandate Rules for Obamacare, Giving Extra Time to Small and Large Businesses, Accounting Today