Human Resources
IRS Eases Employers Into Employer Mandate

IRS Eases Employers Into Employer Mandate


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The Treasury and Internal Revenue Service (IRS) released final regulations on the employer mandate under the Patient Protection and Affordable Care Act (Affordable Care Act), giving small employers another year of transition relief and making it slightly easier for large employers to comply in 2015. The final regulations were released on February 10, 2014.

This Aon Hewitt bulletin provides an overview of the final regulations and their potential impact on employer-provided health coverage under the Affordable Care Act. Highlights include:

  • Employers with at least 50 but less than 100 full-time employees (FTEs) are not required to comply with the employer mandate until 2016.
  • Employers that employ 100 or more FTEs must comply with the employer mandate beginning in 2015 or risk a penalty. For 2015 only, a large employer that offers minimum essential coverage (MEC) to at least 70% of its FTEs and their eligible non-spouse dependents will not be subject to the “Failure to Offer” penalty, but could still be liable for the “Targeted” penalty if the coverage is not affordable or does not provide minimum value.
  • An overview of the rules for determining who is an FTE, including the permissible methods for counting hours and nuances for various categories of employees.
  • Additional transition rules for 2015.

Download IRS Eases Employers Into Employer Mandate