Employers now have new transition relief and more time to comply with the requirements related to employee health care coverage. The changes were included in the IRS's final regulations on excise taxes that employers must pay if they fail to meet certain health care coverage requirements.
Under the final regulations, employers with 50 to 99 full-time and full-time equivalent employees generally will not be subject to either excise tax until 2016. Employers with at least 100 full-time and full-time equivalent employees will be subject to the excise taxes in 2015, but with additional transition relief to ease compliance.
For details, read Tax Flash 2014-02 from our Washington National Tax Office.
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