October 1, 2013 ACA Notice Requirements for Employers
Confusion reigns regarding the Patient Protection and Affordable Care Act ("PPACA") and obligations to provide notices to employees of information regarding the new Health Insurance Market Place ("Exchanges") by no later than October 1, 2013.
WIB has received numerous calls and inquiries concerning the October 1, deadline over the past several days. Understandably, some of the requirements of the PPACA get lost in the myriad of news reports and debates about extending time limits and attacks on program funding.
WIB is therefore publishing an article by Andy DeClercq with links to model notices. Andy is an attorney with Boardman & Clark, LLP - the law firm retained by WIB to assist WIB members.
In the meantime, a couple of key issues include:
Number of Employees: The October 1, 2013 Notice Deadline is not limited to employers with more than 50 employees. The Notice requirement applies to all employers covered by the Fair Labor Standards Act ("FLSA"). The FLSA covers all employers with at least one employee and at least $500,000 annual business revenue.
Employer Coverage: The October 1, 2013 Notice Deadline is applicable whether or not the employer offers any health insurance to its employees. The model notices used will be different for employers offering health plans from those who do not.
Full vs. Part-Time Employees: The Notice requirements are applicable to both full and part-time employees.
New Hires: Employees hired after October 1, 2013, must be provided applicable notices at the time of hire or within 14 days thereafter.
COBRA Notices: Required COBRA notices for employees have been modified to reflect information on the exchanges.
Video of the Week - 11/25
The SHOP Marketplace in Open
News of the Day - 11/26
President Obama Vows Veto of Bipartisan Tax Deal
President Obama is prepared to veto a bipartisan package of business tax breaks that House and Senate negotiators are close to finalizing. In a statement, Treasury Secretary Jack Lew described the proposal as "fiscally irresponsible" and said "any deal on tax extenders must ensure that the economic benefits are broadly shared."
The origin of the fight is a package of 55 or 56 corporate income tax breaks that at one time or another were inserted into the tax code as temporary provisions. Typically these breaks were made temporary so as to reduce their notional cost in CBO scores, rather than because their proponents actually wanted them to be temporary. Consequently, extension of the tax breaks upon expiration became routine — hence the name "tax extenders."
In addition to the 55 traditional tax extenders, there is the "bonus depreciation" tax cut. This lets companies take a larger tax write-off for investment expenses than would otherwise be possible. It was introduced as a recession-fighting temporary measure that really was supposed to be temporary, but the businesses who profit off it would like it to stay permanent.
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