Here’s How Obamacare Just Got Easier for Employers
Before it was postponed, businesses complained long and loudly about the burdens of the Affordable Care Act’s requirement that they report employees’ health coverage information. Among business and labor experts, the worry was the companies would shrink their workforces and cut employees’ hours in order to work around that provision.
As originally written, the health care reform mandated that businesses with 50 or more full-time employees provide those workers with a minimum level of health insurance coverage or face tax penalties of as much as $3,000 per full-time employee, excluding the first 30, beginning in 2014. For the federal government to know which companies had failed to provide coverage and how much those companies should be fined, a great deal of information must be transferred from business and workers to a great number of government agencies.
That transfer is known as the reporting requirement, and to be successful, it will need a supporting infrastructure of new data collection systems at both the business and governmental level, plus greater coordination between everyone involved. But in early July that date has was delayed until 2015 because both the government and businesses needed more time to adjust to the changes.