Barak Obama’s administration unexpectedly announced in late June 2013 that implementation of new “Obamacare” health law penalties would be delayed for at least a year. The penalties, originally slated to start January 1, 2014 (see a discussion here), are now on hold until at least January 1, 2015. Along with a sense of relief, this announcement has left many small business owners wondering what the reprieve means for their companies now.
For businesses with more than 50 full-time employees, who would have been penalized a fee of $2,000 per uninsured employee starting in January 2014, the delay means they may re-think strategies for complying with the new health law. Some takeaways from the delay:
1. You have more time to assess options. A recent Wall Street Journal survey of small business owners found that about half didn’t know what it would cost them to provide insurance to all employees or if it would be less costly to simply not provide insurance and pay the penalties. The twelve month delay provides employers with more time to assess options.