The National School Boards Association (NSBA) today applauded the federal government’s decision to delay the implementation of IRS rules for the Affordable Care Act (ACA) until January 2015, based upon the “complexity of the requirements and the need for more time to implement them effectively.”
On March 18, 2013, NSBA filed a comprehensive response to the IRS’s proposed rules implementing ACA to apprise the agency of the “unanticipated impact certain provisions of the proposed rule may have as public school districts across the country wrestle with questions” ranging from calculation of service hours to the so-called “large employer” determinations.
NSBA Executive Director, Thomas J. Gentzel said, “We are pleased that the IRS has heard our concerns about the need for clarification on the Affordable Care Act before the rules become final to minimize any adverse impact on the nation’s schools and students’ educational outcomes.”
In its comments to the IRS, NSBA raised concerns about the challenges the proposed rules would have on school employment arrangements such as long vs. short term teaching substitutes with consecutive assignment, independent contractors, additional extra-curricular duty providers, re-hired retired employees, and even pay for school board members.
NSBA General Counsel, Francisco M. Negrón, Jr. added, “We believe the IRS has made a prudent choice with regard to implementation of the Affordable Care Act. School districts are in particularly challenging situation as employers, because of the unique part-time and full-time employment configurations they utilize. We look forward to further clarification from the IRS that will help school districts effectively navigate this new legal framework.”
Governing highlighted NSBA in their story today Obamacare-Mandate Delay to Have Little Impact on Public Employers. The article noted:
Some groups, however, said they were pleased with the White House’s action. The National School Boards Association (NSBA), which represents school districts that collectively employ more than 6 million people nationwide, had submitted lengthy comments to the Treasury Department, asking for clarifications on issues specific to the public school sector. For example, substitute teachers who teach at different schools or part-time employees who perform additional duties, such as coaching, raise some unanswered questions about the initial guidance for calculating full-time employment, says Francisco Negron, general counsel for NSBA.
Tuesday’s announcement should allow the federal government, the school boards and other employers to continue the dialogue about these issues, he says, without the health reform law’s penalties looming in 2014.
“We were glad to see they have taken what we think for the time being is a prudent approach, to slow things down in response to our concerns,” Negron says. “This seems to suggest that they heard those concerns, and we can continue to work to make sure we are in compliance with the law.”
Education Week’s District Dossier also covered the delay announcement and what it means to school district in, Affordable Care Act Delay Means Reprieve for Districts, and cited NSBA.