The deadline is fast approaching. Do you own a business? Undoubtedly, you know that the employer mandate of the Affordable Care Act has been postponed for a year. But do you realize that you have to tell your employees about the new online health insurance marketplaces resulting from the ACA by October?
Starting October 1, any business generating $500,000 or more in annual revenue and having at least one employee must notify all of its employees by letter about the Affordable Care Act’s health care exchanges, or contend with fines of up to $100 per day.
This rule applies to any company regulated by the Fair Labor Standards Act. There is no exception based on the company’s size.
Who will enforce the fines? That duty may fall to the Small Business Administration. If not the SBA, perhaps the Department of Labor will do it. When FOX Business posed the question to White House officials earlier this month, they declined comment.
What about new hires after October 1? The DoL gives you 14 days to notify them by letter – 14 days from the day they start working for you.
Is there a sample letter you can download & modify? Yes, there is. The Department of Labor offers two such letters on its website.
For employers that offer insurance: https://www.dol.gov/sites/default/files/ebsa/laws-and-regulations/laws/affordable-care-act/for-employers-and-advisers/model-notice-for-employers-who-offer-a-health-plan-to-some-or-all-employees.pdf
For employers that don’t offer insurance: https://www.dol.gov/sites/default/files/ebsa/laws-and-regulations/laws/affordable-care-act/for-employers-and-advisers/model-notice-for-employers-who-do-not-offer-a-health-plan.pdf
These are multipage DoL notices, and you can fill them out, print them out, and either mail them to employees at home or distribute them (as physical letters) in the office. Part A (page 1) provides basic information about the exchanges. Part B (the other 1-2 pages) provides details about the health plan you offer, or basics like the EIN and contact info for your business if you don’t sponsor a health plan. Remember: your deadline is October 1.
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Robert Pagliarini, PhD, CFP® has helped clients across the United States manage, grow, and preserve their wealth for nearly three decades. His goal is to provide comprehensive financial, investment, and tax advice in a way that is honest and ethical. In addition, he is a CFP® Board Ambassador, one of only 50 in the country, and a fiduciary. In his spare time, he writes personal finance books. With decades of experience as a financial advisor, the media often calls on him for his expertise. Contact Robert today to learn more about his financial planning services.
