Don’t fire employee #50 just yet: Obamacare employer mandate delayed until 2015

July 3rd, 2013 by Joe Kristan

20121120-2Obamacare employer mandate delayed.  Employers who have been puzzling over how to hide that 50th employee to avoid the expensive Affordable Care Act employee coverage mandate have a one-year reprieve.  The news came in a Treasury blog post hilariously titled “Continuing to Implement the ACA in a Careful, Thoughtful Manner“:

The Administration is announcing that it will provide an additional year before the ACA mandatory employer and insurer reporting requirements begin.  This is designed to meet two goals.  First, it will allow us to consider ways to simplify the new reporting requirements consistent with the law.  Second, it will provide time to adapt healthcoverage and reporting systems while employers are moving toward making health coverage affordable and accessible for their employees.

A translation:

“First, it will allow us to consider ways to simplify the new reporting requirements consistent with the law” = The law is so complicated that nobody knows how to comply.

 “Second, it will provide time to adapt health coverage and reporting systems while employers are moving toward making health coverage affordable and accessible for their employees” = “Resume hiring people before the 2014 election, people!”

This means the “shared responsibility payment” (what a creepy name) provision for employers with 50 or more employees will not apply until 2015.  As the employee count for the 2015 payments will be based on 2014 payrolls, that gives employers an extra year to figure out how to outsource or automate enough functions to stay under 50.

Additional coverage:

Tyler Cowen, Repeal the employer mandate altogether

Evan Soltas, The Side Effects of Delaying Obamacare

Ezra Klein, Obamacare’s employer mandate shouldn’t be delayed. It should be repealed.

Sara Kliff, The politics of delaying Obamacare:  “The White House just swapped one political headache for another.”

TaxGrrrl, White House Suspends Tax, Other Reporting Requirements For Obamacare

Paul Neiffer,  Employer Mandate Delayed for One Year

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