On July 24, 2014, the Internal Revenue Service (IRS) released Revenue Procedure 2014‐37 to index the Affordable Care Act’s (ACA) affordability percentages for 2015. As a result, large employers (according to the ACA’s definition) will need to ensure that an employee’s contribution for self-only coverage, if elected, will not exceed 9.56 percent of the employee’s income from that employer. This percentage increased from the 9.5 percent that was written into the original law and subject to change each year to reflect increases in inflation. Under the ACA’s employer mandate play or pay rules, large employers may be assessed penalties for failure to offer full-time employees minimum value coverage that is affordable.
Also on July 24, the IRS issued the following draft versions of the ACA’s reporting forms that large employers will use, beginning in 2015, to report health coverage provided to employees:
Once implemented, the IRS will use these forms as a primary means to track enforcement of the ACA employer mandate. Instructions on how to complete the forms are expected to be made available by the IRS later this month.
AGC will alert members when final versions of the forms with instructions are available. For additional information on the Affordable Care Act, including articles, government resources, pre-recorded webinars and more, visit AGC’s online library of ACA information and resources at www.agc.org/ACA.