Posts Tagged: Employer penalty

ABA Section of Tax Meeting

in Affordable Care Act

I recently spoke at the ABA Section of Tax meeting in San Diego this past weekend.  Besides having beautiful weather, we had some great conversations regarding the final SBC regulations, the employer penalty under 4980H, Form W-2s and the changes in the San Francisco health coverage law.  I want to thank all the governmental speakers that attended, and we certainly appreciate your informal comments regarding these new rules.  Our next meeting is in May in DC, which is traditionally our best attended meeting from both the practitioner and the government side.

Additional Auto Enroll and Employer Penalty Guidance

in Affordable Care Act

This morning the IRS issued Notice 2012-17.  The Notice provides information on questions from employers regarding the provisions of the Affordable Care Act governing automatic enrollment, the employer penalty, and the 90-day limitation on waiting periods. The Notice also outlines various approaches that the agencies are considering proposing in future regulations or other guidance.  Our team will be preparing and analysis of the Notice for distribution next week. The Notice can be found at the following link:  http://www.irs.gov/pub/irs-drop/n-12-17.pdf

Shared Responsibility Safe Harbor Proposal

in Affordable Care Act

This afternoon IRS dropped Notice 2011-73, which espouses a safe harbor permitting employers that offer coverage to their employees to measure the affordability of that coverage by using wages that the employer paid to an employee, instead of the employee’s household income.  This proposed safe harbor would only apply for purposes of the employer shared responsibility provision, and would not affect employees’ eligibility for health insurance premium tax credits.  A copy is linked below. http://www.irs.gov/pub/irs-drop/n-11-73.pdf

Full-Time Employee Definition

in Affordable Care Act

This morning the IRS requested public comment on the definition of a “full-time employee” for purposes of the employer penalty provisions of the Affordable Care Act.  IRS Notice 2011-36 (link below) sets forth various ways that a full-time employee can be defined under these rules and asked employers and other interested parties to submit comments by June 17, 2011.  Under the Affordable Care Act, employers with 50 or more full-time employees that do not offer affordable health coverage to their full-time employees are required to pay the employer penalty.  The employer penalty takes effect January 1, 2014 and specifically exempts small employers that… Continue Reading