CAB 14-2: The IRS has issued a final rule for large employers (50 or more full-time employees) to “pay or play” under the Patient Protection and Affordable Care Act (ACA), providing them more time to comply with the ACA’s requirement to offer affordable, qualifying healthcare coverage or pay a penalty under certain circumstances. For employers with 50 to 99 employees, the final rule delays the mandate until the 2016 plan year. For employers with at least 100 employees, the requirement applies on a phased-in basis so that in the 2015 plan year, 70%–rather than 95%–of the workers must be offered coverage. Large employers must meet the 95% threshold in 2016 and later plan years.

The final rule provides guidance on the delay and the phase in, and also addresses a broad range of related employer “shared responsibility” requirements considered in previous pronouncements.