New Transition Relief for Some Employers Under the Affordable Care Act
On February 10, 2014, The U.S Department of the Treasury and the Internal Revenue Service (IRS) issues final regulations on the employer responsibility provisions of the Affordable Care Act (ACA). Senior Advisor to the Secretary and Deputy Assistant Secretary, Mark Iwry, briefed the restaurant industry on the regulations. The final rules include a number of changes in response to input received from business groups including the National Restaurant Association.
The ACA’s employer mandate eventually will require employers of 50 or more full-time-equivalent employees to either offer health benefits to their full-time employees or face possible penalties. The mandate originally was due to take effect in 2014, but the White House last summer moved the effective date to 2015.
In a final rule issued on February 10, the Obama Administration said that employers with 50 to 99 full-time-equivalent employees won't be subject to the law’s employer-mandate penalties until 2016.
For more details on this and other provisions to the final rule including; making permanent the "look-back measurement" method, offering transition relief for certain employer penalties as well as employers with non-calendar year health plans view the Treasury Department’s fact sheet.
The National Restaurant Association continues to ask Congress to come together in a bipartisan manner to better align the definition a full-time employee with current business practices, eliminate the duplicative automatic-enrollment provision, and simplify the determination of a small business under the law. If you haven’t already done so, please review the "40 Hours Works" action alert and contact your Member of Congress.
The NYS Restaurant Association will continue to work with its partner the National Restaurant Association to analyze the regulations and provide updates on how the rules will affect restaurants.