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Late afternoon on February 10, 2014, just seven months after its initial delay, the Treasury Department has granted additional transition relief from the employer shared responsibility provisions of the Affordable Care Act. Now, mid-sized employers (defined as those with 50 to 99 full-time employees) will be given until January 1, 2016 before the employer mandate takes full effect.

Large employers (with 100 or more full-time employees) will still be subject to the penalty provisions beginning January 1, 2015 which requires employers to offer an affordable and acceptable health care plan or face significant penalties. Those penalties can be up to $2,000 per full-time employee, per year, or the lessor of $3,000 per year for those employees receiving federal subsidies through the exchange program. In order to avoid having to pay this penalty, those large employers must offer health care coverage to at least 70% of their full-time equivalent employees in 2015 and at least 95% in 2016 and beyond.

For more information or questions on this topic, please contact your local UHY LLP professional.