At Least One Employee and $500K in Annual Revenue? Then You’ve Got a Deadline Coming Up 10/1/13!

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If you have at least one employee and generate at least $500,000 in annual revenue, there is another healthcare requirement that applies to you–and you must act by October 1, 2013. As part of the Affordable Healthcare Act, you are required to send a notice to all employees via first-class mail or electronically* by October 1, 2013 informing them about the new government-run health insurance exchanges. The notification requirement applies to any business regulated under the Fair Labor Standards Act and the letters must be sent to all employees, full-time and part-time and regardless of their benefits plan status.  You are not required to provide a separate notice to dependents covered under the plan who are not employees.

The letters must let the employees know that the exchange exists and provide other details to help employees understand how the exchange could help them. The letters must also be sent to any new employees who get hired after October 1, 2013 and within 14 days of the employee’s start date. The Department of Labor has released sample notices in order to help employers satisfy this notification requirement. Employers who offer health insurance to all or some of their workers can find a sample notice here while businesses that do not offer health insurance coverage will use an alternative notice found here.

While most health insurance providers are preparing this letter for their clients, you should contact your provider if you haven’t already received notification.

As always, feel free to contact Scharf Pera & Co., PLLC today if you have questions regarding this information.

*Electronic transmission is required to meet the Department of Labor’s electronic disclosure safe harbor rules.

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