Preparing for the “Play or Pay” Provision

The Patient Protection and Affordable Care Act of 2010’s shared responsibility provision, commonly referred to as “play or pay,” is scheduled to take effect Jan. 1, 2014. It does not require employers to provide health care coverage, but it in some cases imposes penalties on larger employers that don’t offer coverage or that provide coverage that is “unaffordable” or that does not provide “minimum value.”

A large employer is one with at least 50 full-time employees, or a combination of full-time and part-time employees that’s “equivalent” to at least 50 full-time employees. The nondeductible penalties generally are $2,000 per full-time employee.

Although the shared responsibility provisions don’t take effect until 2014, employers will use information about the workers they employ in 2013 to determine whether they’re subject to the provisions and face the potential for penalties in 2014. The rules are complex, so contact us today to learn whether you might be subject to penalties and what steps you can take to avoid, or at least minimize, them. If you have questions about the Patient Protection and Affordable Care Act, contact us.

[authorblurb name=”Peter F. Beahan” image=”5808″ url=”/about/leadership-team/peter-f-beahan/” text=”is a Shareholder in the tax department of BeachFleischman PC. He has 25 years experience in public accounting. In addition to a Certified Public Accountant, Beahan is also Accredited in Business Valuations (ABV).”]

Peter Beahan
Peter Beahan

Peter F. Beahan is COO of the Tax Department at BeachFleischman PC. He has over 30 years of experience in public accounting. In addition to being a Certified Public Accountant, Beahan is also Accredited in Business Valuations (ABV).