On February 10, 2014, the Obama administration announced that it will delay implementation of part of the Affordable Care Act’s employer mandate for a second consecutive year.

The Treasury Department stated it will delay the mandate’s penalty for small businesses who employ between 50 and 99 workers for one additional year, to 2016.  Employers with the equivalent of 50 or more full-time workers were originally required to offer coverage or pay a penalty starting in 2014, but that requirement was delayed last summer when the Obama administration announced a delay in enforcement of the requirement, from 2014 to 2015.

The announcement of a further delay comes as a welcome relief to many small business owners with less than 100 employees who were feeling pressure to reduce their workforce to less than 50 full-time equivalent employees in order to avoid the Affordable Care Act’s employer mandate.

The article, “Obama Delays Health-Insurance Mandate for Some Firms” on WSJ.com has additional details.

For more information about this announcement, the Affordable Care Act or other employee benefits topics, please contact Steve Theising at STheising@KDDK.com or (812) 423-3183; or contact any member of the KDDK Tax and Employee Benefits Law Practice Team.

About the Author

Steve Theising

Steven M. Theising, an Associate at Kahn, Dees, Donovan & Kahn, LLP, in Evansville, Indiana, practices primarily in the areas of business, construction, real estate, tax, and collection and creditors’ rights law. Steve utilizes his accounting and financial background to provide both legal and practical business analysis in negotiating, resolving and closing business, construction and real estate transactions and disputes. He also assists clients with addressing and resolving environmental and estate planning issues.

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