Affordable Care Act’s October 1st Deadline

Affordable Care Act's October 1st DeadlineAffordable Care Act’s October 1st Deadline

President Obama’s Affordable Care Act has gone through much speculation since its initial proclamation. And like any law, there have been proponents on each side. The employer mandate regarding big businesses has been criticized, reviewed and delayed. Opponents of the mandate have argued that the penalties imposed on big businesses that do not abide by this mandate are excessive and unfair. Consequently, Obama has addressed these grievances by providing employers more time to analyze their finances and comply with the new rules.

Because only 4 percent of businesses actually employ 50 plus full-time employees, the remaining 96 percent were supposedly left intact and untouched. However, this is not necessarily the case.

Beginning the October 1st of this year, any business (regulated under the Fair Labor Standards Act) with at least one employee and $500,000 in annual revenue must notify all employees by letter about the Affordable Care Act’s health-care exchanges. In addition, letters must also be distributed to any new hires within 14 days of their starting date. Fortunately, small businesses will not be penalized if they fail to comply by the October 1st deadline.

Although the employee mandate has been pushed back to 2015, the October 1, 2013 deadline still stands.  Despite the U.S Small Business Administration’s efforts, small business owners are still under educated.

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Source: Insurance Journal