The official final regulations were released today on 4980H reporting and minimum essential coverage reporting by employers. We will be following up later this week with how employers can comply with these rules in a cost effective manner.
This evening the Internal Revenue Service issued final regulations governing the IRS and employee reporting requirements. These reporting requirements apply for purposes of the employer penalty under Code Section 4980H. Additional final reporting requirements apply for purposes of an employer who sponsors minimum essential coverage for its employees. The final rules are to be published on Monday, March 10. The unofficial versions are located as follows:
Code Section 4980H Reporting: http://www.ofr.gov/OFRUpload/OFRData/2014-05050_PI.pdf
MEC Reporting: http://www.ofr.gov/OFRUpload/OFRData/2014-05051_PI.pdf
Today, the agencies issued final regulations on the 90-day waiting period rule. The final regulations define a waiting period as the period that must pass before coverage becomes effective. At the same time, the agencies released proposed regulations clarifying the maximum length of an “employment based orientation period” and how that integrates with a waiting period.
The pre-release final regulation is available here: http://www.ofr.gov/OFRUpload/OFRData/2014-03809_PI.pdf
The pre-release proposed regulation is avaiable here: http://www.ofr.gov/OFRUpload/OFRData/2014-03811_PI.pdf
The formal release is scheduled for Monday, February 24th.
The health and welfare team has a webinar on March 6 concerning the final employer penalty regulations. Click the following link for additional information and to register. Link to Register
As you no doubt seen in this morning’s paper, the final employer penalty regulations have been released. We plan on providing a one hour teleconference to brief our clients on these daunting and important regulations (all 227 pages) in the next few weeks. So, stay tuned for an invite. In the meantime, here are a few important highlights:
- Large employers with 100 or more employees only have to provide coverage to 70% of their full-time employees for 2015. Beginning in 2016 and beyond the percentage increases to 95% of full-time employees.
- Employers with 50-99 employees do not have to comply until 2016.
- Special look back transition rules apply to 2015.
- The application of the look back method to some employee groups and the monthly method to other employee groups is clarified.
- Certain volunteers are excluded from the definition of full-time employees.
- Special rules are added for school teachers to determine full-time status.
- Seasonal employees working 6 months or less will not be considered full-time.