Employer Pay-or-Play Excise Tax Delayed!

The Treasury Department has announced a delay in the pay-or-play excise tax, stating that “the employer shared responsibility payments … will not apply for 2014. Any employer shared responsibility payments will not apply until 2015.” (The term “employer shared responsibility payments” is the formal name for the pay-or-play excise tax.) It is unclear how reliable this delay is, given that it is buried in the 5th paragraph of a Treasury Notes blog entry entitled “Continuing to Implement the ACA in a Careful, Thoughtful Manner.” We did, however, want to get word of this development to Willis clients as soon as possible. Willis’ National Legal & Research Group is monitoring developments closely and we will follow up with additional information as it becomes available.

Background

Under the health care reform law, large employers – those with 50 or more full-time employees (generally counting part-time employees as fractions) – may incur a penalty tax unless they meet standards for offering health coverage to individuals who are full-time employees. Specifically, no employer will incur the penalty tax if it offers individuals who are its full-time employees and those employees’ dependents “minimum essential coverage” and, with respect to the full-time employees, the coverage is affordable and provides minimum value. The pay-or-play excise tax was set to become effective for 2014.

Powered by Willis

Need Additional Information?

If you need more information, please contact us so we can connect you with one of our CPA advisors who will be committed to your business and personal success. BLS is here to help!