Today, the Obama Administration announced that employer with fewer than 100 employees would receive an additional 12 month grace period which will extend the employer mandate penalty delay to 1/1/2016.
By providing an additional grace period for employers with less than 100 employees, this creates the incentive for businesses to have 99 or fewer employees, to reduce their staff, or to put a cap on their growth. As a result, the Obama administration is creating the status of 99er to go along with the previous Obamacare creations/side effects which were named 49ers and 29ers.
What is a 99er? This is the new status that a business owners will want to be for 2015. If they can keep their FTE count to below 100 employees, 99 or less, then they can avoid penalty exposure and extra reporting requirements. This 99er status would expire on 1/1/2016…unless the law is changed again.
What is a 49er? This is that status that many small businesses aspired to, prior to the Obamacare delays of 2/10/14. A 49er is a business with fewer than 50 FTEs as defined by Obamacare law, Under the original Obamacare law, employers with 49 or fewer employees would be exempt from employer mandate penalties and extra reporting requirements. As such, many employers have implemented plans to keep employment below 50 employees, or to get below 50 employees…..thus 49ers.
What is a 29er? Under original Obamacare rules, employers are subject to penalties of $2,000 or $3,000 for each employee who works over 30 hours per week who is not offered affordable coverage by the employer. Employees who work under 30 hours (29ers) do not cause a penalty exposure for their employer. Many employers, large, and small, have implemented plans to maximize 29ers.