IRS Issues Final Regulations on Employer Shared Responsibility Penalty

On February 10th, the IRS issued final regulations regarding the employer shared responsibility penalty. The most significant items to note in the regulations are a one-year delay of the employer mandate for midsize employers and a phased-in coverage requirement for large employers.

  • For employers that have 50 to 99 full-time equivalent (FTE) employees, the employer penalty has been delayed until after 2015.
  • For employers that have 100 or more FTE employees will be subject to the shared responsibility penalty in 2015. For those employers, the IRS is requiring to offer minimum essential coverage to 70% of its employees in 2015 (and 95% in 2016) to avoid a penalty under IRC Sec. 4980H(a).

For More Information

For more information on the employer shared responsibility regulations, see the most recent IRS Questions and Answers. You can also contact your Lewis & Knopf team at 810-238-4617.