Update to ACA Employer Mandate
The Obama administration issued the 4980H regulations on Monday, February 10th further postponing the Employer Mandate of the Affordable Care ACT for employers with 99 or less employees. The new regulations also reduce the mandatory coverage requirement of 70 percent of employees for larger employers and address other portions of the mandate, including implementation issues and safe harbors.
Mid-sized businesses with 50 to 99 full-time workers will have another year to provide health insurance coverage to employees. These employers will not face fines until 2016 for failing to provide coverage to workers, according to the final rule.
Larger businesses that employ 100+ full-time workers will be subject to the mandate beginning in 2015. Conversely, the final rule gives these employers more time to ramp up coverage. Large employers only need to offer coverage to 70% of employees in 2015, rather than 95% to avoid fines. In 2016, they will need to start offering coverage to 95% of employees.
The Department of Treasury advised that the rule change does not affect businesses that employ fewer than 50 individuals, as the ACA does not require them to provide coverage to employees.
SBS will continue to alert you of important changes to the Employer Mandate as they develop.