(CNSNews.com) – The Internal Revenue Service warned employers in a new regulatory proposal not to come up with clever schemes to avoid Obamacare’s 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 mandate’s 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 individual’s 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 mandate’s penalties.
- IRS To Employers: Pay ObamaCare ‘Shared Responsibility’ Or Else (forbes.com)
- IRS Warns Employers: Not to try avoiding ObamaCare Insurance Mandate (jtm71.wordpress.com)
- Regulatory Alert: IRS Issues Proposed Rules on Employer Shared Responsibility for Health Insurance Coverage (weblog.sba.gov)
- IRS Issues Proposed Regulations On Employers’ Shared Responsibility For Health Coverage Under ACA (pattidudek.typepad.com)
- IRS Looks to Force Obamacare on Employers Who Cut Staff (lifenews.com)