IRS cuts slack under final health premium tax credit regs — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
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IRS cuts slack under final health premium tax credit regs

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in Compensation and Benefits,Human Resources

While the legality of the Affordable Care Act health care reform law was pending before the Supreme Court, the IRS issued final regulations on the premium tax credit. Since the dust has settled, it’s time to take a closer look at the regs.

The regs provide some penalty relief to employers of 50 or more full-time employees when even one employee enrolls in coverage through an individual health insurance exchange (scheduled to begin operating in 2014) and receives a premium tax credit because the group coverage doesn’t provide minimum value and his or her contribution isn’t affordable.

The final regs apply to tax years ending after Dec. 31, 2013. (77 F.R. 30377, 5-23-12)

Penalty relief

Employees whose household income is between 100% and 400% of the federal poverty line, and who obtain health benefits through an individual exchange because their group plan is unaffordable and doesn’t offer minimum value, will be eligible for p...(register to read more)

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