Feds grant small firms huge Obamacare break
If you thought you caught a huge break when the feds delayed Obamacare’s employer mandate last summer, you’re not going to believe IRS’ latest move.
Many employers thought they caught a huge break when the feds announced a one-year delay to the employer mandate last summer.
And now there is even better news regarding that health reform law.
New two-phase system
Instead of one delay, the feds decided to roll out a two-phase installation of the employer mandate. That essentially gives medium-sized firms another year to prepare.
Eventually, the new mandate will require all businesses with 50 or more “full-time equivalent” (FTE) employees to provide “affordable” health insurance to 95% of those FTEs or pay federal penalties for not doing so. Here are the two phases of the new employer mandate:
- Part 1: Employers with at least 100 full-time employees can avoid federal penalties if they offer affordable cover to at least 70% (instead of 95%) of workers by Jan. 1, 2015. The 95% requirement has been delayed until the start of 2016.
- Part 2: Employers with between 50 and 99 full-time employees will be required to offer affordable coverage to 95% of those employees by Jan. 1, 2016 (rather than 2015), to avoid penalties.
- Share on
Free Training & Resources
White Papers
Provided by Anaplan
White Papers
Provided by Personify Health
Further Reading
One-week paycheck delays would leave nearly eight in 10 U.S. workers scrambling to cover bills, according to PayrollOrg’s 2025 Getting Pa...
The IRS is extending an olive branch to businesses that received tax credits related to COVID-19 in error. The tax cops are launching a ...
With benefits costs climbing and new laws like SECURE 2.0 adding complexity, viewing employee benefits as a simple fixed cost is an outdate...
The demand for finance chiefs is growing. Yet more companies are replacing their CFOs. Even so, CFOs are a lot less worried about AI taking...
Spirit Airlines didn’t fail overnight. The collapse was years in the making – a compounding sequence of financial decisions that an...
If you’ve used Excel to create a database table with fixed formulas, and that table will be used by multiple people, there’s a ...
