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IRS Issues New Set of Q&As on Employer Shared Responsibility Provisions of the Affordable Care Act

In a follow up to its recent release of final regulations on the employer shared responsibility provisions of the Affordable Care Act (also known as the employer ?Ç£play-or-pay?Ç¥ rules), the IRS issued a new set of 56 questions and answers?áproviding information about the play-or-pay rules. Topics addressed in the Q&As include (i) identification of employers that are subject to the play-or-pay rules, (ii) employer liability for play-or-pay penalties, (iii) calculation of play-or-pay penalties and making payments, and (iv) dependent coverage considerations.?á A link to the Q&As is available here.

IRS Q&As Highlight Employer Penalty for Reimbursing Individual Health Insurance Premiums

The IRS has issued a set of Q&As highlighting the penalty that may be charged to employers who reimburse their employees on a pre-tax basis for individual health insurance premiums through arrangements described by the IRS as ?Ç£employer payment plans.?Ç¥?á In Notice 2013-54, issued last year (see our related blog post available here), the IRS confirmed that employer payment plans, which may include certain standalone health reimbursement arrangements, cannot be integrated with individual health insurance policies in order to comply with the market reform provisions of the Affordable Care Act, such as the annual dollar limit prohibition and the preventive care requirements. A Q&A points out that an excise tax of $100 per day per applicable employee (which could amount to $36,500 per year for each employee) may be imposed on such plans for failure to satisfy the Affordable Care Act?ÇÖs market reform requirements. Employers who are currently providing these… Continue Reading

May 2014