Under the new health care law there are 3 classifications for business sizes. Small or 2 to 49 full time employees, medium or 50 to 99 full time employees or large or 100 or more full time employees. Small employers are currently exempt from the “pay or play” penalties however medium and large employers will be subject to certain rules and penalties.
On February 10, 2014 the U.S. Treasury Department released final regulations implementing the employer shared responsibility provision of the ACA. The final rules delayed implementation for medium sized employers until 2016. Certain conditions must be met to qualify for this delay:
1. The employer must employ a limited workforce of at least 50 full-time employees (including FTEs) but fewer than 100 fulltime employees (including FTEs) on business days during 2014;
2. During the period beginning on Feb. 9, 2014, and ending on Dec. 31, 2014, the employer may not reduce the size of its workforce or the overall hours of service of its employees in order to satisfy the workforce size condition; and
3. During the coverage maintenance period, the employer may not eliminate or materially reduce the health coverage, if
any, it offered as of Feb. 9, 2014.
any, it offered as of Feb. 9, 2014.
All these delays and changes can make things very confusing. Contact us today to help you during these changes and to ensure you are compliant with all the new changes.