811 Barton Springs Road, Suite 811, Austin, Texas 78704 ph: 512-236-9900
July 3, 2013
On July 2, 2013, the Obama administration announced that the Affordable Care Act’s requirement that large employers either provide health coverage to their employees or face tax penalties will be delayed until 2015. The compliance deadline was originally slated to take effect on January 1, 2014.
The administration decided to delay the implementation of the employer mandate so that employers would have additional time to absorb the law’s requirements and to achieve compliance with the new rules without threat of penalties. The administration is also initiating a review of the law’s complicated reporting process in an effort to simplify the employer’s reporting requirements.
This postponement will not affect other major provisions of the law, and the administration said that it is still on track to achieve an October 1 opening of the Health Insurance Marketplace where small businesses and consumers may compare plans and purchase coverage.
For several months, our firm has been helping clients better understand the complexities of the Affordable Care Act, and we regularly work with employers to develop cost-effective strategies for compliance.
The administration’s decision to delay the penalty provisions until 2015 will provide some much needed breathing room for those employers presently scrambling to understand the law and to update their health care coverage. If you haven’t already done so, this is a good time to learn how the law’s ultimate implementation will impact you and your business, without risking a tax penalty.
For more information regarding the Affordable Care Act and what it means to both small and large employers, please contact James Landon or Seth Meisel.