The IRS announced last week that they have delayed the shared-responsibility requirement for employers who have 50-99 full-time equivalent employees in 2014.  These employers will now have until 2016 to offer health care coverage to their employees or be subject to the shared-responsibility payments.  These employers will be required to start reporting for health care coverage in 2015.

To be eligible for this delay, employers must not reduce their workforce or hours of service in order to qualify and they must maintain their previously offered health coverage.

For employers with 100 or more full-time equivalent employees, there is a phase in for the number of employees required to be covered.  For 2015 70% must be offered minimum essential coverage and for 2016 and beyond 95% must be offered minimum essential coverage.  If these employers do not meet these percentages or do not offer insurance that is affordable relative to the employee’s household income they will be subject to the shared-responsibility payments.

There are many additional requirements so be sure to consult your Trusted Business Advisor at JamisonMoneyFarmer PC if you have questions.