On February 10, 2014, IRS released final regulations regarding the Employer Shared Responsibility provision under the Affordable Care Act (the employer penalty). While their guidance is lengthy, the key aspects are:
The employer penalty will apply to employers with 100 or more full time equivalent employees starting in 2015. For employers with 50-99 full time equivalent employees, there is a one year delay; the penalty will start in 2016.
For 2015 only, large employers will avoid the penalty that applies for failing to offer health insurance coverage if coverage is offered to at least 70% of full time employees. Beginning in 2016, coverage must be provided to at least 95% of full time employees to avoid the penalty.