Obama’s “pay or play” mandate

While the Affordable Care Act (aka Obamacare) approval has reached an all-time low it is important to realize that, for now, it is the law of the land.  While individuals do not face an extreme IRS penalty in 2014 the same cannot be said for 2015.  Individual penalties for 2015 are the higher of the following: (1) two-percent of your household income or (2) $325 per person ($162.50 per child under 18).  In comparison, the individual penalties for 2014 are the higher of: (1) one-percent of your household income or (2) $95 per person ($47.50 per child under 18). 

Obama’s “pay or play” mandate begins in January 2015 for applicable large employers.  An applicable large employer is defined as fifty (50) or more full-time employees or fifty (50) or more full-time employees when including full-time equivalents.  Penalties from the IRS against employers are severe in 2015.  If employers do not have proper procedures in place the penalties can be crippling.  When it comes to something as complex as the Affordable Care Act you cannot afford the risk of extreme IRS penalties.  Seeking legal advice for the Affordable Care Act should be on your “must do” list before 2014 comes to a close.  This is not intended to be legal advice and does not form an attorney-client relationship with any reader.