bake -- August 2013 - 18

legislation

Health Care Mandate Delayed
In a major victory for employers who have been struggling

Since the reporting mandate is aimed at giving the IRS a tool

to understand and ﬁgure out how to implement the 2010

to calculate and assess penalties against large employers that

health care law, the US Treasury Department announced July

failed to offer coverage to full-time employees, the delay in the

2 that it has delayed by a year the law’s mandate that requires

reporting requirement means large employers will not face

“large employers” to report to the IRS whether they offered

penalties under the law for failing to offer health care coverage

their full-time employees and their dependents health care

to their full-time employees in 2014.

coverage in 2014.
“Any employer shared responsibility payments will not apply
The National Restaurant Association hailed the Treasury

until 2015,” the Treasury Department said. The Administration

Department’s announcement, which also delays employer

said that in months of dialogue with employers and employer

penalties under the law until 2015.

groups it has “heard concerns about the complexity of the
requirements and the need for more time to implement them

The reporting requirement was originally due to take effect

effectively.”

Jan. 31, 2015, and requires large employers – deﬁned
as those with 50 or more full-time-equivalent

The National Restaurant Association has been one of the top

employees – to provide the IRS with details

employer groups arguing for transition rules and more ﬂex-

on whether they offered health care

ibility for employers as the law is implemented. According to

coverage to full-time employees

the Treasury announcement, the delay will give the federal

and their dependents in 2014.

government more time to ﬁgure out how to streamline

Instead, the IRS will use 2014 as

more time to understand and implement the law.

the reporting requirements and give large employers
a year of transition and voluntary
reporting, and has pushed

The agency said the Administration will release

mandatory reporting for large

formal guidance explaining the transition relief within

employers and insurers to

the next week, and more extensive proposed regula-

Jan. 31, 2016, to track data

tions to explain the employer reporting requirements

on health care coverage

later this summer. The National Restaurant Association

employers offered

will be providing additional input as further regula-

in 2015.

tions are issued, and will continue to advocate for
streamlining the reporting process.
 
“Once these rules have been issued, the administration
will work with employers, insurers, and other
reporting entities to strongly encourage them to
voluntarily implement this information reporting in 2014
in preparation for the full application of the provisions in
2015. Real-world testing of reporting systems in 2014 will
contribute to a smoother transition to full implementation in
2015,” according to the Treasury Department’s announcement.
Keep up with all the latest news on the health care law at the
National Restaurant Association’s Health Care Knowledge
Center at healthcare.restaurant.org.

18 < AUG 2013 | bakemag.com
http://healthcare.restaurant.org http://www.bakemag.com
bake -- August 2013

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