Skip to comments.IRS Warns Employers: Do Not Try to Avoid ObamaCare Insurance Mandate
Posted on 01/13/2013 5:18:13 AM PST by IbJensen
(CNSNews.com) The Internal Revenue Service warned employers in a new regulatory proposal not to come up with clever schemes to avoid Obamacares employer health insurance mandate.
The IRS said it would soon issue anti-abuse rules to discourage employers from taking advantage of any regulatory loopholes.
The Treasury Department and the IRS are aware of various structures being considered under which employers might use temporary staffing agencies (or other staffing agencies) to evade application of section 4980H [the employer insurance mandate], the IRS said in a proposed regulatory announcement issued December 28.
The IRS said it would issue a so-called anti-abuse rule in an attempt to prevent employers from using temp agencies to circumvent the mandate, essentially writing into law that even though an employer hires temporary workers and therefore is not technically under the mandates jurisdiction, the IRS would fine them anyway for not providing health insurance.
It is anticipated that the final regulations will contain an anti-abuse rule, the agency said. Under that anticipated rule, if an individual performs services as an employee of an employer, and also performs the same or similar services for that employer in the individuals purported employment at a temporary staffing agency or other staffing agency of which the employer is a client, then all the hours of service are attributed to the employer for purposes of applying section 4980H.
In other words, if an employer hires someone part-time, then uses an employment agency to bring the same person on for a second part-time shift, the IRS will still hold the employer liable under the ObamaCare mandate.
Similarly, IRS said that if an employer hires the same person for two part-time stints by using two different employment agencies, it will hold either the employer or one of the employment agencies liable for the mandates penalties.
The issue stems from the employer health insurance mandate in Obamacare, which requires employers with 50 or more full-time employees to provide government-approved, affordable health insurance to at least 95 percent of their employees (and dependents).
If any of those employees receives government health insurance subsidies, the IRS will fine the employer up to $2,000 per employee, according to a formula outlined by the IRS.
The warning is part of proposed regulations from the IRS outlining how employers must determine whether they meet the 50 full-time-employee threshold and whether the insurance they offer meets government standards.
The IRS said that a full-time employee is one who works an average of 30 hours per week or 130 hours per month, roughly 6 hours of paid service per weekday.
The IRS also said that in order for an employers health insurance plan to pass muster with the government, it must be available to 95 percent of employees and cost no more than 9.5 percent of an employees wages.
The agency specified that employers could still fall under the mandate if they employ enough part-time workers to equal 50 full-time workers. For example, if an employer has 40 full-time workers and 20 part-time workers, that employer would be considered by the government to have 50 full-time workers and would be subject to the mandate because the 20 part-time workers average to 10 full-time workers meeting the 50 full-time-worker threshold.
To build a gigantic, overreaching octopus of a government, larded with bureaucrats, takes a lot of other people's money.
We are witnessing a dictatorial takeover by this administration .
In other words- what the law actually says is not relevaant to enforcement. Companies will do as IRS bureaucrats decree, regardless of what the law says.
That’s the new American way.
If enough companies don’t comply, the IRS is in trouble.
Long past time for civil disobedience by the RIGHT!
FRICK the IRS. Nothing but mafia thieves.
The “gestapo” press begins.
Lower your shields. Surrender now. We will add your biological and intellectual substance to the collective. Resistance is futile.
The coup of our country and the Supreme Court and Congress do nothing, care not a whit.
CUT OFF THE MONEY!!
“It takes a long time to do necessary administrative steps that have to be taken to put legislation together to control the people.” Rep. John Dingell (D-MI)
Prepare for yet more layoffs, then!
This probably isn’t going to be popular, but remember that the IRS doesn’t make the rules, they enforce them.
This is apparently an evolving situation (make it up as they go along) such that as they see how various affected groups react, the noose gets tightened. The best hope, imho, is with the states, but I don’t know how much good that will do wrt the Treasury Dept. Does anyone doubt that 0bama is trying to force people out of business via Cloward-Piven?
I wouldn’t be surprised if paying the penalty instead of buying a policy isn’t eliminated or raised before it’s time.
We need to somehow treat this the same way we will treat the 2A. It *will* crash the economy because it will destroy so many vulnerable people, financially.
More good times ahead.
IRS: The law is what we say it is; don’t trouble yourself with what is written in the statute.
The IRS does make the rules. The Congress makes the laws. If Congress passed a law requiring employees to no fire employees or reduce there hours then there wouldn't be a loophole.
Laws = Congress / Rules = faceless bureaucrat dictators.
Wasn’t this a satire piece just yesterday?
That is partly disinformation, partly nothing new. Today you cannot tell employees that they are independent contractors to avoid paying social security. This rule is no different; you can’t pretend employees are part time through creative bookkeeping when they are in fact full time. What the new decree from our overlords does not do is prevent the actual workaround that is being used. Wendy’s, Dominoes, and the rest can still limit hours to 29 per week and just hire more employees, as long as they are not hiring the same person through a different agency or to perform two different jobs.