IRS/Treasury Provides One-Year Delay For Certain Employer Health Coverage Reporting And Employer “Pay Or Play” Penalty Taxes

July 2013

Employer Health Coverage Reporting and Employer “Pay or Play” Penalties Delayed

On July 9, 2013, the U.S. Treasury Department and Internal Revenue Service (“IRS”) issued formal guidance (IRS Notice 2013-45; herein, the “Notice”)1 that provides for a one year delay until 2015 with respect to (i) certain information reporting requirements imposed on employers and others that provide health coverage to employees and (ii) the assessment of excise tax penalties on certain employers under the employer “pay or play” mandate (also known, more formally, as the “employer shared responsibility penalty”).2 Prior to the announcement of this one year delay, such information reporting and employer penalty rules were scheduled to apply in 2014. Accordingly, employers will now have more time to develop appropriate recordkeeping and reporting systems in order to comply with the reporting requirements in 2015, and to review and, as appropriate, modify their health plans to avoid employer shared responsibility penalties that are scheduled to begin in 2015.

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