The IRS has issued its final regulations under IRC 4980H regarding ESR, Employer Shared Responsibility, which is the employee health coverage. These regulations are expected to be in effect starting after December 31st, 2014. The IRS has an FAQ on their website in order to answer the many questions that people may have about their healthcare. There are two main steps in the transition into ESR, Transition Relief and Additional 2015 Relief. 

The Transition Relief states that ESR provisions will apply to most people in 2015 but if a company has more than 50 but less than 100 employees, then they may begin offering healthcare coverage in 2016. Also, in order to avoid fees and penalties, employers must offer healthcare to 70% of full time employees in 2015 and 95% of employees starting in 2016.   

The Additional 2015 Relief states that employers with at least 100 employees may sign up for healthcare for a minimum of 6 consecutive months instead of the usual 1 year. In addition, employers with plans that do not begin on January 1st, 2015 may start anytime in 2015. As Long as employees are taking steps to get their dependents covered, dependents may begin coverage in 2016 instead of 2015.   


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