IRS issues employer mandate details

IRS issues employer mandate guidance (REUTERS)

IRS issues employer mandate guidance (REUTERS)

The IRS yesterday (December 28, 2012) issued a Notice of Proposed Rulemaking on the employer requirements under the Affordable Care Act (Internal Revenue Code §4980H), many of which will take effect on January 1, 2014.

The mandate will require “applicable large employers” to either offer full-time employees (and their dependents) an “affordable” health benefits package that meets a “minimum value” standard, or face possible penalties. Applicable large employers are defined as employers with 50 or more full-time-equivalent employees. IFA is reviewing the extensive 144 page rule, which was accompanied by a Q&A document, and will have a full analysis soon. The full rule is available here.

Also, IFA is offering franchise system webinars for IFA members interested in learning about the details of the law’s requirements, penalties and other implications for franchise businesses. To request a webinar, please email Kevin Serafino (kserafino@franchise.org).

In yesterday’s rule, the proposed regulations put forth are organized as follows:

· Definitions

· Rules for determining status as an applicable large employer and applicable large employer member

· Rules for determining full-time employees

· Rules for determining assessable tax payments under IRC §4980H(a)

· Rules for determining whether an employer is subject to assessable tax payments under section IRC §4980H(b)

· Rules relating to the administration and assessment of assessable tax payments under IRC §4980H

· Rules relating to transition relief in certain circumstances

The notice of proposed rulemaking is scheduled for publication in the January 2, 2013, Federal Register, and comments are due by March 18, 2013. In addition, the IRS announced a public hearing on the notice of proposed rulemaking for April 23, 2013, at 10 am. IFA will be submitting formal comments building upon the extensive comments already submitting regarding the law.