Health Care Alert - Treasury Announces Large Employer Play or Pay Penalties Will Be Delayed For One Year
by Nancy K. Campbell
On July 2, 2013, the Treasury Department informally announced that large employers will have an additional year to comply with the employer shared responsibility penalty provisions in Section 4980H of the Internal Revenue Code (the “Code”), which was added by the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act (the “Affordable Care Act” or "ACA"). The penalty provisions in Code Section 4980H, commonly referred to as the “large employer play or pay penalties,” were originally scheduled to take effect on January 1, 2014. Large employers will now have an additional year before the penalties take effect.