The Department of Treasury announced on February 10 that businesses with 50 to 99 full time equivalent employees will not face a tax penalty under the Employer Mandate provision of the Affordable Care Act (ACA) for not providing health care coverage to their employees in 2015.
This postponement will allow medium sized employers more time to adjust to providing coverage. Also in 2015, organizations with 100 or more full time equivalent employees will only need to provide health insurance to 70 percent of their full time employees. This recently amended phase-in of the Employer Mandate (also known as the “Play or Pay” requirements) will only impact the 2015 obligations. For 2016 and beyond, all businesses with 50 or more full time equivalent employees must provide health care coverage to at least 95 percent of their full time employees as originally envisioned in the ACA. Please keep watch for further updates. By HR Pros of the HR Support Center