U.S. Treasury Department Delays Reform Mandated Penalties for “Play or Pay”
APPLIES TO All Employers |
EFFECTIVE July 2, 2013 |
QUESTIONS? Contact HR On-Call (888) 378-2456 |
The U.S. Treasury Department announced on July 2, 2013 that enforcement of the employer “play or pay” mandated penalties under Healthcare Reform will be delayed until January 1, 2015. The “play or pay” mandate requires large employers (companies with 50 or more full-time employee and full-time equivalents) to offer a minimum value medical coverage plan to substantially all of their fulltime employees, and dependents, or be subject to an annual penalty tax of up to $2,000.00 per full-time employee. This postponement means that employers can delay offering a minimum value medical coverage plan to their employees until at least January 1, 2015. Additionally, this decision postpones a requirement under the healthcare reform law that employers report on health coverage they provide to their employees.