- Posted by dalegroup
- On March 11, 2016
- 0 Comments
- ACA, Affordable Care Act, Health Insurance, healthcare, Obamacare
Costly penalties (think $2K per worker or more) face businesses failing to comply with new Affordable Care Act regulations
New Requirements took effect January 1, 2016
Missing the boat on this one could really hurt business owners.
As the rollout of the Affordable Care Act (also referred to as “Obamacare”) continues, this past January 1 marked an important date for anyone who owns a business employing more than 51 workers. That’s the day such businesses became legally obligated to offer health insurance coverage to employees.
Larger companies, with more than 100 workers, were required by the Affordable Care Act to offer this level of coverage effective January 1, 2015.
“Many Affordable Care Act provisions are complicated — and there’s no doubt they can be confusing to people who operate a business,” says Kevin McDonnell, Dale Group’s vice president of Benefits and Planning. “That said, the government does not recognize a lack of understanding or an absence of awareness as an excuse. This is exactly why enlisting the services of experts like the Dale Group can help stave off significant financial pain.”
Fines for noncompliance vary, based on multiple factors — but penalties generally begin at $2,000 per employee and escalate from there. And additional, follow-up fines may follow.
The types of businesses that are most likely to be directly impacted by the new requirements include those in sectors like construction and food service. Such businesses typically did not offer health coverage in the past, and their workers tend to be more migratory than those in other fields.
Again, while the regulations are complicated, any employee who works more than 30 hours per week — including union workers — must be offered coverage. The law, however, does not apply to seasonal workers.
“There’s no doubt that this law presents challenges for business owners,” McDonnell adds. “But compliance is absolutely mandatory. It’s much more cost effective to hire professionals to help manage the process than to face massive fines at tax time.”