Post image for Employer Mandate Delayed One Year

Employer Mandate Delayed One Year

July 3, 2013

in Compliance, Employee Benefits, Health Care Reform

Originally posted by Benefit Mall on http://www.benefitmall.com/News/Pages/Legislative-Updates/Employer-Mandate-Delayed-One-Year 

On Tuesday, July 2, 2013, the Obama administration announced that the employer mandate aspect of the Patient Protection and Affordable Care Act (PPACA) will be delayed by one year.

The mandate requires businesses with 50 or more workers to provide health insurance coverage to employees. As a result, the administration will start enforcing the mandate in 2015, rather than January 1, 2014, in an effort to give businesses more time to prepare. Penalties for firms not providing health coverage to employees will now begin in 2015 – after next year’s congressional elections.

The new delay will not affect other aspects of the health law, including the establishment of exchanges in states for low-income Americans to obtain health insurance.

This announcement does not affect the individual mandate, which requires most taxpayers to either purchase insurance or pay a penalty.

There will be additional changes tied to this delay, and the administration has stated that they will provide formal guidance within the next week.

 

The views expressed in this post do not necessarily reflect the official policy, position, or opinions of Shirazi Benefits. The federal regulations offer some basic guidance on how to calculate the total number of employees for purposes of the employer mandate. However because different elements of PPACA are still being finalized through the regulatory process, all employers and other stakeholders are strongly encouraged to hire a locally-licensed attorney, certified public accountant, or similar professional in their jurisdictions regarding any legal, benefit, or tax matters discussed herein.

Post image by:

Previous post:

Next post: