Denver Staffing Agency - Obama Issues Employer Responsibility Regulations Under ACA - Part 6

  • Posted by: J. Kent Gervasini |
  • 12/31/12 |
  • 5:38 PM
Denver Staffing Agency - Obama Issues Employer Responsibility Regulations Under ACA - Part 6

On Friday, December 28, 2012, the U.S. Department of the Treasury and the Internal Revenue Service finally issued long-awaited proposed regulations detailing many of the employer responsibility provisions under the Affordable Care Act.


  • The 144-page rule will be published in the Federal Register on Jan. 2.
  • Comments on the proposed regulations are due March 18.
  • In addition, a public hearing on the regulations will be held in Washington, DC, on April 23.

Employers May Rely on Proposed Regulations – Pending Issuance of Final Regulations
Employers may rely on the proposed regulations pending the issuance of final regulations or other applicable guidance. Any future guidance that is more restrictive will not be applied retroactively and employers will be given sufficient time to come into compliance with final regulations. No indication was given as to when final regulations might be issued.

Affordable Care Act Employer Regulations – Technical, Complex and Cover Many Topics
You many download a PDF copy of the proposed regulations below, however, here are two key provisions of particular interest to staffing firms and their clients:

  • Staffing Firms Subject to Common Law Employer Rules
    The proposed regulations stress that the look-back rules and other provisions applicable to “temporary staffing agencies” are based on the assumption that the staffing firm is an employer under common law principles. The regulations include specific examples of situations that the IRS deems abusive. These include instances in which clients might use staffing firms purporting to be the common law employer to evade the client’s employer responsibility obligations under the Affordable Care Act. In such cases, the regulations provide that the client generally would be treated as the common law employer.
  • Break-in-Service Rules for Determining When Employees Will be Considered “Terminated”
    The proposed regulations also provide “break-in-service” rules for determining when a previously terminated employee who is subsequently rehired by an employer will be considered a new employee for purposes of resetting the measurement and stability periods under the look-back method.

Employer Shared Responsibility Provisions under the Affordable Care Act - Read More!
Download a PDF copy of the proposed regulations from the IRS Web site.The IRS has also released questions and answers relating to the proposed regulations, which are available here.

American Staffing Association (ASA)
Will Submit Formal Comments and Testimony on Proposed Regulations as Appropriate

 ASA and its legal team and coalition partners will be studying the proposed regulations over the next several weeks, and will publish a more detailed analysis upon completion of the review.
The information in the article above is intended for general education purposes only and should not be relied upon as a substitute for professional, legal, and/or accounting advice.

Source:  American Staffing Association, Dec. 31, 2012, Edward A. Lenz, Sr. VP, Legal and Public Affairs  


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