• New Employer Shared Responsibility Penalty Guidance: Timely Employer Action Needed
  • March 22, 2013 | Authors: Jessica S. Carter; David M. Glaser; Meridith Bogart Krell; Bernard F. O'Hare; Bruce L. Wolff
  • Law Firm: Patterson Belknap Webb & Tyler LLP - New York Office
  • The Affordable Care Act, the federal health care reform law enacted in 2010, added a provision to the Internal Revenue Code (“Code”) (Code Section 4980H) that, beginning on January 1, 2014, may subject employers to an excise tax penalty if a covered employer fails to offer health plan coverage to a sufficient number of its employees and their dependents or if it offers coverage that is deemed unaffordable or fails to provide a certain prescribed minimum level of benefit value. This new penalty provision, formally known as the “employer shared responsibility penalty,” is often referred to as the “employer pay or play” provision. In this Alert, these new rules are referred to as the “Health Care Penalty” or “Health Care Penalties.”