Obamacare Employer Mandate for Small Businesses Delayed Until 2016
The Affordable Care Act’s business mandate, a crucial provision within the health care reform law which requires firms with 50 or more employees to offer their workers’ insurance or pay a fine, has been delayed until 2016 for business with between 50 and 99 employees.
The employer mandate was originally delayed in July, 2013 when the administration announced it would postpone the mandate’s compliance provisions until 2015 for all firms. This marks another delay in the implementation of that mandate well into a presidential election cycle.
Companies with 100 or more full-time employees will still be required to pay a penalty of up to $3,000 per worker if they do not elect to provide health coverage.
“We’ve gotten a lot of requests to give some more time to some small businesses that would otherwise be subject to this, and we’re responding to that by addressing these businesses,” a senior Treasury Department official was quoted on Monday. “We think a phase-in approach is a way to administer the law better, and enhance overall compliance with the law.”
[Photo via AP]
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