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CCH® BENEFITS — 05/9/11

IRS Seeks Comments On Employer Shared Responsibility, Provides Clues To Future Rules On Full-Time Employees

from Spencer’s Benefits Reports: IRS Notice 2011-36 solicits public input and comment on several issues in the Patient Protection and Affordable Care Act (ACA) which will be the subject of future proposed guidance on how to comply with the ACA employer shared responsibility provisions. In particular, the notice requests comment on possible approaches that employers could use to determine who is a full-time employee.

The notice, which makes clear that its contents are not guidance, describes potential approaches that could be incorporated in future proposed regulations, to certain discrete issues under IRC Sec. 4980H, as added by the ACA, particularly the issue of who is a full-time employee. The notice invites comments on these approaches.

According to the notice, the Department of the Treasury and the Internal Revenue Service (IRS) intend to publish proposed regulations both on the Sec. 4980H issues addressed in this notice and on a broader set of issues under Sec. 4980H. This notice also invites comments on the interpretation of the 90-day limitation on waiting periods for group health plans and health insurance issuers offering group health insurance coverage under Public Health Service Act Sec. 2708, and on how the interpretations of that section and of Sec. 4980H should be coordinated.

Some of the specific topics addressed in Notice 2011-36 include the following:

• how “employer” would be defined;
• how “employee” would be defined;
• definition of “hours of service;”
• how hours of service would be calculated;
• applicable large employer status determined based upon the sum of full-time employees and full-time equivalents;
• full-time employees for determining applicable large employer status;
• full-time equivalents for determining applicable large employer status;
• seasonal employees;
• calculating the number of full-time employees; and
• potential methods for determining full-time employees snder Sec. 4980H.

Comments may be submitted by June 17 by email at Notice.Comments@irscounsel.treas.gov (include “Notice 2011-36” in the subject line) or by mail to: Internal Revenue Service, CC:PA:LPD:PR (Notice 2011-36), Room 5203, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044.

For more information, contact Mireille Khoury of the Office of Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities at (202) 622-6080.

For more information on this and related topics, consult the CCH Pension Plan Guide, CCH Employee Benefits Management, and Spencer's Benefits Reports.

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