Yesterday the Treasury and IRS delayed the “pay or play penalties” for an additional year for businesses with 50-99 employees. There is also a phase in period during 2015 in which large businesses (100+ employees) will avoid penalties if they cover at least 70% of their full-time employees versus the previous 95% safe harbor.
The final guidance also notes that employers with 50-99 FTEs will NOT automatically be issued relief for this penalty. They will receive transitional relief if they certify that they meet the following three requirements:
1. Limited workforce size (50-99)
2. Didn’t eliminate or reduce their employee health coverage that was in effect as of February 9, 2014
3. They didn’t reduce their workforce or the hours of their employees as of February 9, 2014.
Click here for the Department of Treasury Release.
Additional information will follow.