On July, 2, 2013, the U.S. Department of the Treasury announced that after hearing concerns from businesses about the reporting requirements under the Affordable Care Act, the new requirements will not take effect in 2014. Employers may voluntarily participate in the reporting for 2014, but the new provisions will not require reporting until the 2015 tax year. Because of this delay in reporting requirements, the employer shared responsibility payments—the large employer assessments that we have mentioned in previous posts—will also not apply for 2014.
See the U.S. Department of the Treasury’s announcement here.
The delayed reporting requirements and assessments will not affect the opening this fall of Vermont Health Connect, Vermont’s health exchange for individuals and businesses with 50 employees or fewer. Robin Lunge, Vermont’s director of health care reform, told the Burlington Free Press that implementation of the state health care exchange will continue as planned.
Small businesses should also be aware that while they may not have to be concerned with the federal shared responsibility assessments for 2014, they still may be responsible for Vermont’s employer contribution assessment, which applies when businesses have “uncovered” full-time employees. “Uncovered” employees are those who are 1. not offered health insurance through their employer, 2. not eligible for their employer’s health insurance, or 3. do not accept health insurance through their employer and have no other coverage.
The information provided in this blog is generic and based on the general definitions and provisions in the new legislation (Affordable Care Act, Act 48, and Act 171). This blog post and the information it contains should not be interpreted as legal advice for any specific situation. Individuals with specific questions about their business are encouraged to consult an attorney.
