On July 2, 2013, the Obama administration announced a one year delay in the implementation of the several components of the Affordable Care Act (ACA). Consequently, implementation of many employer and insurer reporting requirements, employer penalty provisions and other provisions of the ACA will be delayed until Jan. 1, 2015.
The U.S. Department of Treasury expects to publish proposed regulations over the summer, which will likely encourage voluntary reporting of certain information in 2014, while not requiring such reporting until 2015.
This announcement will also delay the imposition of shared responsibility payments on employers until 2015. However, employees’ access to premium tax credits will still be available in 2014.
The delay will not apply to several related income tax changes that take effect in 2013, including the imposition of additional taxes on income other than earned income.
This delay will require detailed scrutiny of all of the provisions of the ACA in order to determine which provisions will actually be delayed and which provisions will still be implemented as scheduled.
KSM is continuously monitoring the regulatory process and will advise you as additional guidance is provided by the Treasury.