Obama Care Required Notice To Your Employees by October 1, 2013

Employers Required Notice to Employees Regarding Health Insurance Coverage.  Obama Care’s primary purpose was to expand access to affordable health care insurance. Central to this is the creation of new Insurance Exchanges (often referred to as the Marketplace). The Exchanges are intended to provide a competitive private health insurance market where individuals and employees of small businesses can shop for affordable coverage. The Exchanges are intended to be up and running by October 1, 2013.

Who is Required to Send the Notice

Most employers will be subject to this requirement as it applies to employers covered by the Fair Labor Standards Act (FLSA). In general, the FLSA applies to employers that have (1) one or more employees who are engaged in interstate commerce and (2) gross annual sales of $500,000 or more. 

Which Employees Should Receive the Notice

The notice must be provided to all employees – part-time and full-time – employed now and those employed after September 30. A separate notice does not need to be provided to dependents who are or may become eligible for coverage under the plan, but who are not employees.

What Are the Contents of the Notice

The DOL has provided two Model Notices (one for employers offering insurance coverage to employees, the other for employers not offering coverage) that may be used to meet these requirements. The model notices are on the DOL website.  Use this notice if you offer a health plan to some or all of your employees.  Use this notice if you do not offer a health plan to your employees.  Use the model notices, don’t try to get creative.  They are a safe harbor.

Timing and Delivery of the Notice

The notice must be provided in writing by first-class mail or, if certain requirements are met, it can be delivered electronically. It must be provided by 10/1/13 to employees hired before that date. Employees hired after 9/30/13, must be given the notice at the time of hiring.

Please give us a call if you have any questions or need any assistance meeting this new notice requirement.

Written by

Steve Moss, CPA is a partner at Holden Moss CPAs and loves helping businesses and their owners grow to be the very best they can be. Our other offices include Raleigh, Oxford and Warrenton.

We are a little different at Holden Moss CPAs. While we still provide traditional tax and accounting services, years ago we realized many clients wanted help in running their businesses and were hungry for ideas, solutions, strategy, and execution. In response, we expanded our skill set and joined Ran One, a global network of business consulting firms. Our membership with Ran One gives us access to proprietary resources and analytical software to help our clients grow, become more profitable and valuable, and have the lifestyle they desire.

Now, blended into the fabric of our normal tax and accounting needs, we are focused on our clients’ businesses in a very different way. While our approach is not right for everyone, for those whom it is, incredible results may be obtained. Whether you have a new, or established, business, or for those in transition of selling or retiring, or for those who simply need to develop an exit strategy or succession plan, our unique approach to client service may be the edge you need.

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