Update on Affordable Care Act: Employee Communication Requirement Penalty Relief

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Just as employers were gearing up for the October 1 required communication to employees – relief!

As was detailed in our post on Friday, September 13, employers are required to provide a notice to all employees, regardless of plan enrollment status or part-time or full-time status, including certain details relating to new health insurance marketplaces created by the Affordable Care Act.  As with many of the aspects of this new law, implementation has proven to be difficult, time consuming and confusing.  Relief was granted late last week in the form of a penalty waiver for failure to provide such notification.

A notice posted on the Department of Labor’s website (as part of the Frequently Asked Question (FAQ) document) stating that employers cannot be fined for failing to provide such notice. 

“If your company is covered by the Fair Labor Standards Act, it should provide a written notice to its employees about the Health Insurance Marketplace by October 1, 2013, but there is no fine or penalty under the law for failing to provide the notice,” the Labor Department said, under the heading “FAQ on Notice of Coverage Options.”  The link follows:   http://www.dol.gov/ebsa/faqs/faq-noticeofcoverageoptions.html

As a reminder businesses covered by the Fair Labor Standards Act (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.

Please contact your Keiter team for any questions you may have on this constantly changing regulation.

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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