Affordable Care Act: Employee Communication Required by October 1, 2013

Affordable Care Act: Employee Communication Required by October 1, 2013

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Although the employer mandate has been delayed, employers covered by the Fair Labor Standards Act (FLSA)* are required to provide a notice to all employees, regardless of plan enrollment status or part-time or full-time status, by October 1, 2013. The notice must include the following:

  1. Information regarding the existence of the Exchange, including a description of the services provided by the Exchange, and the manner in which the employee may contact the Exchange to request assistance
  2. A statement that, if the employer plan’s share of the total allowed costs of benefits provided under the plan is less than 60% of such costs, the employee may be eligible for a premium tax credit if the employee purchases a qualified health plan through the Exchange
  3. A statement that, if the employee purchases a qualified health plan through the Exchange, the employee may lose any employer contribution to any health benefits plan offered by the employer and that all or a portion of the contribution may be excludable from income for federal income tax purposes

The notice must be written in language that can be understood by the average employee. It may be delivered by first-class mail or, if certain requirements are met, electronically.  It must be provided to new hires within 14 days of an employee’s start date. 

The Department of Labor (DOL) shared a Model Notice for employers offering insurance coverage to employees and the other for employers not offering coverage.

Should you have any questions, feel free to contact your Keiter professional.

*Businesses covered by the FLSA must have at least two employees, and are those that have an annual dollar volume of sales or business revenue of at least $500,000 or are hospitals, businesses providing medical or nursing care for residents, schools and preschools or government agencies.

About the Author

Keiter CPAs is a certified public accounting firm serving the audittax, accounting and consulting needs of businesses and their owners located in Richmond and across Virginia. We focus on serving emerging growth businesses and companies in the financial servicesconstructionreal estatemanufacturingretail & distribution industries and nonprofits. We also provide business valuations and forensic accounting servicesfamily office services, and inbound international services.

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The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.


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