According to a blog post on the U.S. Department of Treasury’s website, the Administration approved the delay in response to concerns voiced by small businesses. Small business owners have criticized the complexity of the ACA’s requirements, and say they need more time to fully adjust to the ACA’s mandates.
The delay will give small businesses an additional year to adjust to the new regulations. The Administration says it will also use the extra time to streamline the compliance process for better comprehension.
What is “Play or Pay”?
The “Play or Pay” rules state that any employer (including those considered affiliated service groups) with at least 50 full-time equivalent employees may be fined $2,000 to $3,000 per full-time employee if they do not provide adequate basic health care coverage for workers.
A full-time employee is defined as those employees working more than 30 hours per week. The penalty provisions are complex, tax-based rules.