Snyder and Associates

 

Tax Byte

October 1st, Deadline - All Employers

We all have been hearing a lot about President Obama’s Affordable Care Act (“ACA”) on the news, but we want to bring everyone’s attention to the upcoming deadline that requires employers to provide written notice informing their employees of the new Health Insurance Marketplace (often referred to as the “Exchange”).  According to the ACA, employers must provide the notice to their employees by October 1, 2013.  This notice informs employees of the existence of the Exchange and a brief overview of what it is.  To help employers with this notification, the Department of Labor (“DOL”) has published (2) sample notices that they can choose from to provide to their employees:

•The first one (linked here) is for those employers who already provide a health insurance plan

•The second one (linked here) is for those employers who do NOT provide a health insurance plan

Although this notification is required by the ACA, on September 11, 2013, the DOL issued a Frequently Asked Question release (“FAQ”) regarding potential penalties to employers who do not comply with this obligation.  In this FAQ, the DOL has asserted that employers would have NO FINE or penalty for failing to provide this notice.  For more on this recent development, please see here. Absent penalties provision, many employers may not feel compelled to provide the notices.  You may want to consult an employment attorney, however, before ignoring the requirement.

Should you have any questions regarding this topic, or would like to discuss further, please give us a call.

Jim Justus

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