Affordable Care Act Employer Mandate Delayed to 2015

The Obama administration announced July 2, 2013 that it will delay the Affordable Care Act’s employer mandate until 2015. This means that businesses with 50 or more employees will not be penalized in 2014 if they do not provide health insurance to workers. Over the next year, the Administration intends to streamline business reporting requirements. This delay was in response to businesses that expressed concern that the policy was confusing and created new data collection and reporting burdens.

What does this mean for EctoHR clients?
Probably not that much for the majority of our client base. For clients that fall into the 50+ Applicable Large employer category, over 90% were not in a position to face penalties.

Still, it is important to note the following as it relates to your business:

Small Business – Less than 50 employees
• The law’s employer shared responsibility policies does not apply to you.
• Theoretically, you will gain access to the Small Business Health Options Program that gives you the purchasing power of large businesses. However, the SHOP has been delayed in its development and is slated to only have one (1) plan option available!
• You may be eligible for a tax credit that covers up to half the cost of insurance if you offer quality coverage to your employees. Upon testing by EctoHR, currently we do not have any clients that are actually eligible for the credit.

Large Employer (50+ employees) with Affordable, quality coverage
• No impact as it stands today.
• Large Employer (50+ employees) not offering affordable quality coverage
• You are being provided with additional flexibility and transition time to move to providing affordable, quality coverage to your workers to avoid any financial penalty.

EctoHR, Inc. is here for your company
EctoHR, Inc. is ready to assist your company with all aspects of HR. Contact a team member at EctoHR by calling 810.534.0170, or by email to hr@ectohr.com.