We have recently received several inquiries regarding the non-discrimination provisions of the Affordable Care Act. In general, these provisions prohibit employers from favoring highly paid employees with regard to health insurance benefits.

The Affordable Care Act provides that, effective January 1,2014, employers which do not comply with the non-discrimination provisions may be fined $100 per day on behalf of each employee who was discriminated against. That being said, the provisions cannot be implemented until the federal government issues regulations. Until then, employers are not required to comply and no penalties will be imposed.

We will notify you when the regulations are issued and provide you with a memorandum which explains your obligations. Please contact us if you have any questions regarding the information contained in this memorandum.

TAX ADVICE DISCLOSURE: THIS WRITTEN COMMUNICATION IS NOT INTENDED OR WRITTEN TO BE USED, AND IT CANNOT BE USED BY ANY TAXPAYER, FOR THE PURPOSE OF AVOIDING PENALTIES THAT MAY BE IMPOSED ON THE TAXPAYER. THE FOREGOING LEGEND HAS BEEN AFFIXED PURSUANT TO U.S. TREASURY REGULATIONS GOVERNING TAX PRACTICE.

THIS MEMORANDUM IS MEANT TO ASSIST IN GENERAL UNDERSTANDING OF CURRENT LAW.  IT IS NOT TO BE REGARDED AS LEGAL ADVICE.  THOSE WITH PARTICULAR QUESTIONS SHOULD SEEK THE ADVICE OF COUNSEL.

© Lamb & Barnosky, LLP 2013