Well, we were set to blog about something else this week (we have quite a stack of stuff awaiting post,plus a bunch of unread blogs) until a faceless (but not nameless) bureaucrat decreed moving the compliance date on Obamacare from Jan. 2014 to presumably Jan. 2015.
Now, you probably know that the compliance applies only to companies of 50 or more employees, probably a group that already has medical insurance, and about all they have to do is certify how many employees they have, what their policy and carrier are, and that it meets or exceeds Obamacare minimum specs. Glad to have an extra year to do not much. The regs on no one working 30 hours a week or less still stand, and were actually reinforced by the latest job stats, which show a lot of hiring in the part time segment.
According to the Wall Street Journal, apparently some Treasury official named Mark Mazur actually put out the over 50 policy in a blog post and cancelled some reporting requirements. too. In a blog post. Jeez.
But, the question arises why the under 50 crowd wasn’t thrown a bone. Maybe Mr. Mazur will wake up in a week or two after NFIB tracks him down and starts one of their great p.r. campaigns with Fox News to get this problem fixed. The best thing would be to leave this segment alone. It’s proposed under Obamacare, that this segment is supposed to get employee insurance by some date, but there isn’t a full credit for the insurance on such companies’ taxes, so it’s a net cost, unless the employees work less than 30 hours a week (and can be exempted), and they probably can’t make it financially at 30 hours, and the current immigrant guidelines have probably tightened the available supply of workers. And these companies are least able to afford it, since they’re normally lower margin, and more competitive on price. Think of your average commerical landscaper/maintenance firm (we have a lot of them in Phoenix): about 35 employees, hopefully all legal immigrants, but at least they pay taxes, we think. Clients will leave at the drop of a rake. No room to add, say, $35k of taxes. at $2k per employee for medical insurance and a 50% tax credit.
So, NFIB, get the cudgel out and seek out Mr. Mazur on this wrong. We’d love to write that at least a couple of cars of the train wreck are back on the tracks.