Daily Tax Update - February 4, 2014: Ways and Means Approves Bills Amending Heath Care Act Employer Mandate

WAYS AND MEANS APPROVES BILLS AMENDING HEALTH CARE ACT EMPLOYER MANDATE:  Today, the House Ways and Means Committee approved two bills which narrow the definition of a full-time employee under the Affordable Care Act.  The Committee passed the “Save American Workers Act,” which would repeal the 30-hour threshold for classification as a full-time employee for purposes of the employer mandate in the Patient Protection and Affordable Care Act and replace it with 40 hours. 

The Committee also approved the “Protecting Volunteer Firefighters and Emergency Responders Act,” which would ensure that emergency services volunteers are not taken into account as employees under the shared responsibility requirements in the Patient Protection and Affordable Care Act.

MISCELLANEOUS GUIDANCE RELEASED:
Revenue Ruling 2014-7 provides guidance on the amount of the life insurance reserves taken into account under § 807 of the Internal Revenue Code for a variable contract where some or all of the reserves are accounted for as part of a life insurance company's separate account reserves.