Treasury Releases Guidance on Employer Mandate Delay

The Internal Revenue Service (IRS) issued Notice 2013-45, regulatory guidance that formally delays the employer mandate provisions in the ACA, first announced on July 2. This guidance confirms that both the employer reporting requirements and the shared responsibility provisions are delayed until 2015, and both will be "fully effective" for 2015. Proposed rules for the reporting provisions are expected to be published this summer, and employers are encouraged to voluntarily comply with the reporting requirements once the proposed rules are released, to ensure a smooth transition on January 1, 2015.

The guidance also confirms that no penalties will be assessed against employers for 2014, despite the fact that this delay will have no effect on the individual mandate, nor access to Qualified Health Plans through receipt of a premium tax credit on an exchange.