While there are a variety of changes that are set to go into effect with the Patient Protection and Affordable Care Act just around the corner, business owners need to be particularly aware of them as they approach, as by law, they're required to make their workers aware of the insurance exchanges that will be set up.
To help business owners understand if these notices apply to them so that company executives can maintain some level of HR compliance, law firm Vedder Price offers some reminders.
For example, the Marketplace Notice requirement – which are the state exchanges that legislatures are establishing – applies to all employers who are covered under the Fair Labor Standards Act. Vedder Price notes that just every business owner who works in the private sector is subject to the FLSA. Additionally, even if business owners have less than 50 workers – which is the cut off point for whether they have to provide "affordable" coverage for their employees – they still need to make their workers aware of these insurance exchanges.
In addition, only current employees need to be notified. The general practice law firm notes that former employees and dependents of current workers need not be informed about the marketplaces, regardless of eligibility.
As for what these notifications need to include in terms of information, at the very least, they should describe the services that are provided, whether employee benefits cover 60 percent of allowable claims, as well as a statement about that expressly points out how employees may lose their tax-free contributions that the employer provides should they choose to obtain insurance through the state exchange.
To ensure that business owners are abiding by the regulatory requirements, the Internal Revenue Service Affordable Care Act office will be developed, headed by IRS official Sarah Hall Ingram, ABC News recently reported.
