Play-or-Pay Mandate Delayed Again For Smaller Employers

Volume 13, Issue 2
February 11, 2014

Yesterday, the Internal Revenue Service (IRS) announced the release of its final regulations implementing the employer mandate (play-or-pay) provision of the Affordable Care Act (ACA) and further postponed the mandate for some employers.

The final regulations, which are scheduled to be published in the Federal Register tomorrow, contain a number of important modifications, many of which will be helpful to large employers, and one change that will be of some help to smaller employers. While the January 1, 2015 deadline remains in effect for the play-or-pay mandate generally, for employers with at least 50, but fewer than 100, full time equivalent employees, the deadline is postponed until January 1, 2016. However, there is no postponement of the other aspects of ACA, many of which took effect on January 1, 2014.

To help employers better understand the final regulations, the IRS has also issued a Fact Sheet

KZA Employer Report articles are for general information only; they are not intended and should not be construed to be legal advice. Reading or replying to such articles does not establish an attorney-client relationship. In addition, because the subject matters and applicable laws discussed in Employer Report articles are often in a state of change and not always applicable to every type of business entity or organization, readers should consult with counsel before making decisions based on the same.