Obama Administration Delays Part of ACA Employer Mandate
This week the Obama Administration announced it is delaying part of the employer mandate outlined in the Affordable Care Act until January 1, 2016. The delay applies to companies with between 50 and 99 FTEs.
Companies with 100 or more full-time workers are still required to comply with the mandate to offer health insurance to their workers starting January 15, 2015 but it will be phased in starting from 70 percent in 2015 to 95 percent in 2016 and beyond. Those who do not comply face financial penalties.
Contractors who work on projects that fall under the auspices of the Davis-Bacon Act or Service Contract Act have funds designated in the wage determinations for each job classification to pay for benefits for hourly workers. Using the fringe portion of the wage to provide benefits results in significant savings on payroll burden, relieves workers of the hassles of trying to find health insurance on their own, and helps contractors who are required to provide health insurance to comply with ACA. To us, it just makes sense to use these dollars as intended.
Check back for more information on this and other ACA developments.