Practice Areas

Obama Administration Delays ACA Employer Reporting and Employer Mandate Penalties until 2015

July 3, 2013

Joshua L. Cannon

The Department of the Treasury has announced that it will delay enforcement of various employer and insurer reporting requirements under the Patient Protection and Affordable Care Act (“ACA”) until 2015.  The announcement specifically references the information reporting requirements for employer-provided healthcare coverage to the IRS and on employees’ Forms W-2.

Treasury’s announcement also acknowledges that the delay in these reporting requirements will make it impractical to impose the employer mandate penalties on applicable large employers that fail to offer minimum essential coverage to their employees, or that fail to offer such coverage that is both affordable and provides minimum value.  As a result, these penalties will also not be enforced until 2015.

The ACA’s employer reporting requirements are also instrumental to the determination of whether individuals are eligible for a premium tax credit when purchasing health insurance through the exchanges, which in turn impacts whether individuals are subject to the individual mandate penalty.  As a practical matter, it may not be possible to administer these credits and the individual mandate in 2014 without this information.

More formal guidance is expected in the coming days.

UPDATE (July 12, 2013): The IRS has issued Notice 2013-45, which formalizes the transition relief described above.


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