On February 10, 2014, the federal government announced that it won't implement measures that require certain employers to offer group health insurance until 2016. While most businesses will still have to comply with the Affordable Care Act, smaller enterprises have been given a reprieve. The enactment date was pushed back to ensure that organizations have enough time to adequately prepare themselves. By granting additional time, the government hopes to help businesses plan and ready their finances for the ACA.
Additionally, there is good news for employers with more than 100 workers. Instead of having to offer insurance to all of their contributors on Jan. 1, 2015, these firms are allowed to gradually ramp up to full implementation. The New York Times reports that these enterprises only need to have coverage for 70 percent of employees in 2015 and 95 percent in 2016 and beyond. According to USA Today, Assistant Secretary for Tax Policy Mark Mazur explained that these recent changes were made to help everyone comply with the ACA.
"Today's final regulations phase in the standards to ensure that larger employers either offer quality, affordable coverage or make an employer responsibility payment starting in 2015 to help offset the cost to taxpayers of coverage or subsidies to their employees," Mazur said.
The U.S. Department of the Treasury provided a summary of how the policy affects employers:
- Employers with 50 or fewer workers don't have to take any actions regarding the ACA.
- Companies with over 100 employees need to offer coverage to 70 percent of their staff in 2015 and 95 percent in 2016 and beyond.
- Businesses with between 50 and 99 staff members have to report on their employees and insurance plans this year and will have to play employer responsibility payments in 2016.
What this time means
Triton HR suggests that business owners and HR departments use the extra time wisely to plan and organize to avoid any penalties in 2016.
In addition, final regulations will be issued shortly that aim to substantially streamline employer reporting requirements for employers that offer highly affordable coverage to all or virtually all of their full-time employees, according to the Treasury.
Triton HR will provide any updates as they are announced.