The Law Office of Diana Macias Valdez - Obamacare Employee Notification Deadline

Obamacare Employee Notification Deadline



Just a friendly reminder: This is an Obamacare requirement that several employers are not aware applies to them because they have less than 50 employees or are simply unaware of the upcoming deadline. So, please spread the word...

If you employ one person or more and your business is subject to the Fair Labor Standards Act (FLSA), you are required to provide notification to all full-time and part-time employees of health insurance coverage options under the newly created Health Insurance Marketplace (also known as the Exchange) by October 1, 2013. Pursuant to section 18B of the FLSA, as added by section 1512 of the Affordable Care Act, all employers must a written notice:

  1. informing employees of the existence of the Marketplace including a description of the services provided by the Marketplace, and the manner in which employees may contact the Marketplace to request assistance;
  2. if the employer plan's share of the total allowed costs of benefits provided under the plan is less than 60 percent of such costs, that employees may be eligible for a premium tax credit under section 36B of the Internal Revenue Code if employees purchase a qualified health plan through the Marketplace; and
  3. if an employee purchases a qualified health plan through the Marketplace, the employee may lose the employer contribution (if any) to any health benefits plan offered by the employer and that all or a portion of such contribution may be excludable from income for federal income tax purposes.

Here is some guidance from the Department of Labor on the notice requirements for your reference:

http://www.dol.gov/ebsa/newsroom/tr13-02.html. I am also providing links to the Department of Labor's model notices, in English and Spanish, for your reference and convenience.

For employers who do not currently offer health insurance:
English Notice: http://www.dol.gov/ebsa/pdf/FLSAwithoutplans.pdf
Spanish Notice: http://www.dol.gov/ebsa/pdf/FLSAwithoutplanssp.pdf

For employers who DO currently offer health insurance:
English Notice: http://www.dol.gov/ebsa/pdf/FLSAwithplans.pdf
Spanish Notice: http://www.dol.gov/ebsa/pdf/FLSAwithplanssp.pdf

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