Delay in ACA Employer Reporting and Employer Penalties

The Treasury Department announced last week that it intends to delay certain reporting requirements under the Affordable Care Act (ACA). As a result, the penalties on large employers (50 employees or more) that fail to comply with the employer mandate to provide coverage will not be enforced for 2014. However, there are other ACA rules and requirements that remain in place.

Two reporting requirements have been delayed under the ACA. The first requires insurers and employers to report certain information about who has “minimum essential coverage” provided by an insurer or plan. The second requires large employers to report to the IRS the name and taxpayer identification number of each full time employee and whether they were covered under the employer’s health plan. Both of these reports were due in 2015 for coverage in 2014, but have been delayed for one year. The Treasury Department has indicated that it will not enforce the employer mandate penalties on large employers who fail to provide affordable, minimum value coverage to full time employees before 2015.

This development does not affect other ACA rules, notably the cornerstone of the legislation, the individual mandate. This means that the Exchange marketplaces will still become operational, and the new requirement for employers to distribute notices about the Exchanges by October 1, 2013 remains in effect.

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