Nextep's 2021 Annual Report is here! See what we accomplished together this year.

Pay or Play Delayed Again for Employers of 50-99

Beth Dean 02.10.14
12 Library

Employers of 50-99 full-time (FT) or full-time equivalent (FTE) workers have been granted a reprieve from the Health Care mandate until 2016.

In 2013, Nextep reported that the employer mandate known as Pay or Play under the Affordable Care Act (ACA) had been delayed until 2015. In simplified terms, the mandate requires employers with 50 or more FT or FTE employees to either play by offering affordable health care coverage that meets certain minimum requirements or to pay a fine. This mandate originally had an effective date of January 1, 2014, but was extended to 2015 to give employers additional time to make necessary administrative accommodations.

The Obama administration announced on February 10 that it will further extend the deadline for the employer mandate for companies with 50-99 FT or FTE employees until January 2016. Employers are now additionally barred from cutting hours or laying off workers in order to fall under the employee-count threshold.

While employers of 100 or more employees will still have to comply with the employer mandate in 2015, they have also been granted a concession. Instead of offering coverage to 95% of their employees in 2015, they are now only required to offer coverage to 70% of full-time employees in 2015, then increase the coverage availability to 95% in 2016.

This delay has no effect on Nextep’s group medical plan.

Nextep is already compliant with current and upcoming Affordable Care Act requirements and already has mechanisms in place to comply with requirements on behalf of participating clients.

As always, Nextep will watch the situation closely and keep you apprised of the latest news. For questions regarding Health Care Reform, your plan’s compliance, or the solution provided by Nextep’s plan design, please contact Nextep’s Benefits Department.

Also on Nextep

Finding a PEO can be a daunting task. You should feel confident in your partnership with Nextep or any PEO for that matter. To ensure you do, we’ve put together a short checklist of questions to ask in your meetings with PEOs.  1. What accreditations and certifications do you hold?  A few credentials you’ll want […]
Read more
(JANUARY 13, 2022) UPDATE: The Supreme Court halted OSHA’s emergency temporary standard (or ETS) to enforce COVID-19 vaccination statuses for employees. While there’s a chance new OSHA guidance could emerge at some point, you can disregard the previously announced vaccination mandate deadlines. As always, we’ll keep you in the loop if new legislation emerges. If you […]
Read more
It’s important to know about upcoming changes to tax laws for businesses. Prepare your company’s budget with this cheat sheet! 2022 Tax Update Breakdown Social Security wage base First $147,00 of wages in 2022 FICA – Social Security (OASDI) 6.2%, up to the wage base FICA – Medicare 1.45% up to $200,000, then 2.35% (The […]
Read more
Even an employer with the best of intentions can become the subject of a lawsuit. Lawsuits by employees are the biggest source of litigation against US entities (Beazley), making it essential for companies to protect themselves against lawsuits. This is where Employment Practices Liability Insurance (EPLI) can offer major financial protection for your company. What […]
Read more
Along with the new year comes new minimum wages for several states on January 1, 2022, that employers should be aware of. As a reminder, when state law differs from federal law, employers must use the wage that benefits the employee the most. In this case, the state minimum wages are higher than the $7.25 […]
Read more
Did you know partnering with a professional employer organization (PEO) can lower your company’s risk?  There are plenty of ways a PEO can take the burden of compliance off your plate to focus on company goals, attracting top talent, and being an employer of choice among competitors.  Here are some notable benefits of partnering with […]
Read more
After multiple delays, Texas officially released its new, increased SUTA rates, creating additional tax payments for many companies. While SUTA rate notices typically occur at the end of each year, many were delayed due to COVID-19. With unprecedented unemployment claims, state unemployment funds were depleted quickly. This rise in unemployment also affected the state SUTA […]
Read more
Minimum wages across many cities and a handful of states will increase on July 1, 2021. As a reminder, when state law differs from federal law, employers must use the one that benefits the employee the most. For example, if a state’s minimum wage is higher than the $7.25 federal minimum wage, it must be […]
Read more
There are many new or updated state laws or employers that will go into effect on July 1, 2021. If your state has an update, you’ll find it below. As with any other regulation, laws are subject to last-minute changes, visit the Department of Labor online for more info. You can also find minimum wage […]
Read more
Under the OSHA Act, employers are responsible for providing a safe work environment, free from hazards that can cause serious harm. On June 10, 2021, the Department of Labor (DOL) along with the Occupational Safety and Health Administration (OSHA) posted new guidance to protect at-risk and unvaccinated employees from COVID-19 in the workplace.  Requirements Part […]
Read more
Tax season will be here soon! Nextep will make W-2s available online and send them directly to employee homes no later than January 31, 2021.  Here’s how you can prepare for the upcoming tax season.  Get Organized Take a look at last year’s tax return and make a note of any forms or technology you used […]
Read more
Along with the new year comes new minimum wages for several states on January 1, 2021. As a reminder, when state law differs from federal law, employers must use the one that benefits the employee the most. In this case, the state minimum wages are higher than the $7.25 federal minimum wage; therefore, the state’s […]
Read more

Download Our App