Employers of 50 or more employees will now have until January 2015 to comply with the mandatory employer and insurer reporting requirements on the Affordable Care Act. Prior to this announcement, large employers that did not offer minimum health coverage would be subject to penalties beginning January 1, 2014.
Mark J. Mazur, assistant secretary for tax policy with the U.S. Department of the Treasury, said in a statement the reasons for the delay are twofold: "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 health coverage and reporting systems while employers are moving toward making health coverage affordable and accessible for their employees."
The administration still plans to open health insurance marketplaces on October 1, 2013. For more information of the effect of the Affordable Care Act on small businesses, see the HF article from the February/March 2013 issue, "Is Obamacare Good or Bad for Your Small Business?" by Phillip M. Perry.
