Less than 3 Weeks Remaining to Issue Insurance Exchange Notice to All Employees!
Are you ready to provide The Patient Protection and Affordable Care Act (PPACA) health insurance exchange notice to employees by October 1st? This applies even to employers that do not offer health benefits and do not meet the employee count or hour guidelines for other PPACA requirements or enforcement. Employers must provide this notice for free to all part time and full time employees with three (3) critical pieces of information as required by FLSA section 18B.
- Inform the employee of the Insurance Marketplace with a description of services and provide contact information.
- Inform the employee if an existing health insurance plan’s share of the total allowed costs of benefits provided is less than 60% of the cost and that the employee may be eligible for a premium tax credit under section 36B of the Internal Revenue Code if the employee purchases a qualified health plan through the Marketplace.
- Inform the employee that a qualified health insurance plan purchased through the Insurance Marketplace may mean the loss of employer paid contributions, which may be excluded from income for Federal income tax purposes.
Employees must receive this notice in writing and it should be able to be understood by the average employee. New employees also need to be provided the Insurance Marketplace notice at the time of hire. Remember, whether an employee is part time or full time or whether the company offer health insurance benefits, employers must legally provide this notice. If you are unsure if this is required for your company or you are not ready to give this notice to all of your employees, please contact Alternative HR for assistance.