The IRS has issued its final rule implementing the employer shared responsibility (the “pay or play” mandate) provisions of the Affordable Care Act. These new rules include:
- The employer mandate will generally apply to larger firms with 100 or more full-time employees starting in 2015 and employers with 50 or more full-time employees starting in 2016.
- The mandate will not apply until 2016 to employers with at least 50 but fewer than 100 full-time employees, providing the employer completes certain certification requirements.
- To avoid a payment for failing to offer health coverage, employers need to offer coverage to 70 percent of their full-time employees in 2015 and 95 percent in 2016 and beyond, helping employers that, for example, may offer coverage to employees with 35 or more hours, but not yet to that fraction of their employees who work 30 to 34 hours.
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