December 2, 2015

December 01, 2015

November 30, 2015

One-Year Delay in Employer Mandate Under Affordable Care Act

On July 2, 2013, the Treasury Department issued a notice that employer penalties under the Affordable Care Act’s (ACA) “pay or play” mandate, which were set to take effect on January 1, 2014, will not apply until 2015. This means that an employer will not be penalized if it does not offer its full-time employees affordable, minimum value health insurance in 2014. Generally, such an employer could have been penalized up to $2,000 per full-time employee. The Treasury Department cited employer feedback as a key reason for the delay and noted that it will provide formal guidance “within the next week.” 

Additionally, ACA requires insurers, health plans, employers and other parties to report certain information on health insurance coverage to the Internal Revenue Service starting in 2014. The Treasury Department has also postponed this reporting requirement until 2015, though it still encourages these entities to voluntarily report coverage information in 2014. 

The implementation of the remainder of ACA, including the health insurance marketplaces/exchanges, individual mandate and other reporting requirements, such as reporting the cost of health coverage on Form W-2s, has not been delayed.

© 2015 Neal, Gerber & Eisenberg LLP.


About this Author


Jeffrey J. Bakker represents companies with respect to a wide array of executive compensation and employee benefit matters, including: designing and preparing deferred compensation and equity compensation plans; ensuring tax and ERISA compliance of qualified and non-qualified retirement plans (including defined contribution, defined benefit and cash balance plans); advising clients as to their fiduciary responsibilities with respect to employee benefit plans; and counseling clients on the administration of welfare benefit plans (including health savings accounts). His practice also...


Patricia S. Cain advises employers on a broad range of employee benefit matters, including counseling employers on the design, implementation and administration of broad-based pension and health care plans, executive compensation arrangements and early retirement programs. She represents employers in ruling requests and controversies before the Internal Revenue Service, Department of Labor and Pension Benefit Guaranty Corporation. She also represents employers in disputes arising under benefit plans, both in the administrative claims process and in federal court.

Patty’s representation of employers includes the following:

  • Preparing or reviewing plan documents and participant communications for alignment with employer’s objectives and legal compliance;
  • Educating employees who are fiduciaries on their responsibilities with respect to benefit plans;
  • Advising employers on proposed changes to benefit plans to meet the employer’s objectives; and
  • Assessing costs and risks associated with benefit plans in connection with buying or selling a business.

Patty also represents executives in negotiating employment agreements and severance arrangements, including negotiating equity participation and other benefits following an acquisition of the executive’s employer.


Stephanie Vasconcellos advises corporations, partnerships and tax-exempt entities on a variety of employee benefits issues, including implementing, re-designing, amending and terminating plans, and correcting plan failures. She counsels clients on COBRA, ERISA, HIPAA, the Internal Revenue Code and other federal laws, as well as federal and state data privacy and security laws. Stephanie also drafts policies and procedures, business associate agreements, plan documents and other transactional documents for employers, health plans and health care providers.