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House Advances Legislation to Tweak Obamacare Workweek Definition

The House took the 114th Congress’s first attempt at altering Obamacare by approving the Save American Workers Act of 2015 on Jan. 8.

The legislation, which received the support of 12 Democrats, raises the Affordable Care Act’s full-time workweek definition to 40 hours from thirty.  If enacted, employers would only be required to provide health benefits for workers who work 40 hours or more per week, significantly scaling back the law’s employer mandate.  While not a full repeal substitute, ARSA and the business community recognize that as long as the White House is occupied by President Obama, completely scrapping the law is unlikely.  Consequently, Congress must enact reforms to the health care law to lessen the burden on employers.

ARSA joined its partners in the Small Business Coalition for Affordable Healthcare on a letter urging support for the Save American Workers Act of 2015.  The Senate is expected to consider similar legislation in the near future, although the Obama administration has committed to vetoing the bill.

Previously from ARSA...

ACA Employer Mandate Penalty Postponed Until 2015

On July 2, 2013 the Obama administration announced the employer mandate portion of the Affordable Care Act (ACA) (Public Law 111-148) will be delayed one year, until Jan. 1, 2015. The White House says it will use that time to simplify and streamline the reporting process, while allowing businesses more time to understand and plan for the implementation of the mandate.

The postponed provision requires businesses with 50 or more “full-time equivalent” employees to offer “affordable,” “minimum essential” health coverage to individuals working more than 30 hours per week, or be subject to tax penalties.

Meanwhile, enrollment in the health insurance marketplace will still be available starting Oct. 1, 2013, though it remains unclear who will be eligible for government subsidies on plans as employers will not yet be required to report their coverage. The individual mandate, which requires most Americans to have insurance to avoid a tax penalty, will also begin on the original date, Jan. 1, 2014.

Stay tuned to ARSA for updates about the implementation of this significant healthcare law.

Preparing for the ACA

Beginning January 2015, the employer mandate under the Affordable Care Act (ACA) (Public Law 111-148) goes into effect, establishing different requirements for businesses depending on the number of full-time employees, the number of workers eligible for federal health insurance subsidies, and the quality of coverage the employer offers.

As companies across the nation scramble to adjust their business plans to ensure compliance with the new regulations, ARSA created a guide for repair stations of all sizes to understand the law better and know exactly what will be expected of their businesses.

While the guide is meant to serve as a resource in crafting an overall tax strategy, the association encourages repair stations to consult with an accountant or tax professional given the complexity of the law.

 



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