The U.S. Supreme Court has upheld the Affordable Care Act, commonly called Obamacare, clearing the way for an employer mandate that will require many small businesses to offer employee health insurance or face a penalty.

In a 5-4 decision, the Court found the ACA’s individual mandate is constitutional under Congress’ taxing power, Reuters reports. The mandate requires individuals to buy health insurance or face penalties beginning in 2014.

That’s also when the ACA’s employer mandate kicks in. Under the health-care law, businesses will have to:

If a business chooses not to offer employee health plans, the Affordable Care Act’s employer mandate stipulates a $2,000 per-employee penalty beyond the first 30 employees. That may actually be cheaper than offering health coverage, CSN notes.

Comply with new reporting requirements. Businesses with more than 50 employees must report the total cost of their group health-plan coverage on employer W-2 forms. Companies must also increase Medicare withholding for workers making more than $200,000 a year, according to HR consulting firm Mercer.

Small-business lobbying groups were split in their support for the Affordable Care Act and the employer mandate. One group, the National Federation of Independent Businesses, joined the legal fight to challenge the law; the NFIB was strongly disappointed by Thursday’s Supreme Court ruling, the Palm Beach Post reports. You can read the Court’s entire decision at FindLaw’s Courtside blog.

Related Resources:

  • Affordable Care Act Upheld (FindLaw’s Decided)
  • The Importance of a Backup Plan: SCOTUS Upholds Individual Mandate (FindLaw’s U.S. Supreme Court blog)
  • 3 Ways Healthcare Reform Can Affect Small Businesses (FindLaw’s Free Enterprise)

You Don’t Have To Solve This on Your Own – Get a Lawyer’s Help

Civil Rights

Block on Trump’s Asylum Ban Upheld by Supreme Court

Criminal

Judges Can Release Secret Grand Jury Records

Politicians Can’t Block Voters on Facebook, Court Rules