On February 10, 2014, the Obama administration and U.S. Treasury announced another delay in the employer mandate for mid-sized employers.
According to the announcement, mid-size employers (with 50-99 FTE employees) will be eligible for transition relief in 2015 if they meet certain requirements.
Larger employers with 100+ employees will still be subject to the employer mandate starting in 2015, with some leeway in 2015.
Here's a look at the recent employer mandate delay and how it impacts small, mid-size, and larger employers.
Small Employers (< 50 FTEs) - No Employer Mandate
Small employers with fewer than 50 FTE employees are exempt from the employer mandate and penalties.There has been no change for small employers with fewer than 50 employees.
In other words, small employers with fewer than 50 employees have no requirement to offer health insurance coverage and are not subject to the employer shared responsibility penalties.
According to the administration, small employers make up 96% of all US employers.
Mid-Size Employers (50 - 99 FTEs) - Eligible for Transition Relief in 2015
Under the recent delay, mid-size businesses (50 to 99 FTEs) will be eligible for transition relief if they meet certain criteria.
According to the administration, mid-size employers make up 2% of all US employers.
Larger Employers (100+ FTEs) - Employer Mandate Starting in 2015, with Leeway
Larger businesses (100+ FTEs), most of whom already offer health benefits, are subject to the employer mandate and penalties starting in 2015. However, there is new leeway in the final rule.
According to the administration, larger businesses will satisfy the employer mandate if they offer coverage to 70% of full time employees in 2015 and 95% in 2016.
According to the administration, large employers make up 2% of all US employers.
Additional Resources on the Employer Mandate
See news coverage on the latest employer mandate delay:
- Obama administration delays part of employer mandate again (Politico)
- ObamaCare's employer mandate pushed back for the second time (The Hill)
- White House delays health insurance mandate for medium-sized employers until 2016 (Washington Post)
For background on the employer mandate, see: