What Does The Employer Mandate Delay Mean For My Business?
On Tuesday, July 2, 2013, the employer mandate portion of the Patient Protection and Affordable Care Act (PPACA) was delayed for one year. This reprieve was given to allow business more time to coordinate a data collection system for reporting. Even though the employer mandate has been delayed, the rest of the Act will still be enforced. This means that most Americans will still be required to have insurance starting January 1, 2014 or pay a tax penalty. Starting in January 2015, businesses who employ more than 50 full-time workers must provide health insurance or pay a fine of $2,000 per employee after their first 30 employees. This means companies will pay $2,000 for employee number 31, $2,000 for employee number 32, number 33, number 34, and so on. To avoid these fines, companies with 50 or more employees must provide health insurance and follow the reporting requirements.
These new laws may be cumbersome and confusing for most employers. Fortunately, the set back of the employer mandate portion of the Patient Protection and Affordable Care Act has afforded time for companies to determine how to deal with this new law. A Professional Employer Organization (PEO) can help guide companies through the employer mandate legislation of the PPACA. The main goals of a PEO are to:
- Provide relief of the employment administration anxiety
- Personnel management solutions
- Reduction of liability through enhanced employment practices as well as compliance and risk management
- Direction and help to benefits packages
- Help improving productivity and profitability
- Assistance with employment laws
Atlanta PEO Services by Einstein Human Resources helps companies cost-effectively outsource the management of payroll, workers’ compensation, human resources, and employee benefits. To find out how Einstein HR can help you navigate through the employer mandate of the PPACA, contact us today.