Guidance Issued on ACA Delayed Implementation
On July 9, the U.S. Treasury and the Internal Revenue Service (IRS) announced transition relief from the Employer Shared Responsibility provisions for 2014. The IRS issued a question and answer document (Notice 2013-45) which explains the scope of the transition relief.
The IRS guidance relates to the July 2 decision by the White House that it was delaying implementation of the employer mandate portion and the information reporting requirements of the Patient Protection and Affordable Care Act (ACA) until 2015. The mandate originally was scheduled to begin January 1, 2014.
The IRS stated that the relief will provide more time for input from employers and other reporting entities in an effort to simplify information reporting consistent with effective implementation of the law; and more time for employers, insurers and other providers of minimum essential coverage to adapt their health coverage and reporting systems.
Notice 2013-45 explains that the transition relief applies to:
- The information reporting requirements applicable to insurers, self-insuring employers, and certain other providers of minimum essential coverage
- The information reporting requirements applicable to applicable large employers
- The employer shared responsibility provisions
The Notice also explains that the transition relief through 2014 for the information reporting and employer shared responsibility provisions has no effect on the effective date or application of other ACA provisions, such as the premium tax credit and the individual shared responsibility provisions.
Gail Cecchettini Whaley, CalChamber Employment Law Counsel/Content