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New Health Care Law Notification Required by October 1, 2013

By MarksNelson on September 20, 2013 in Tax

The health care law, the Patient Protection and Affordable Care Act (PPACA), has some upcoming deadlines, including the requirement for most individuals (including children and other dependents) to carry health insurance beginning January 1, 2014.  The most current deadline is the establishment of a health insurance exchange in all states by October 1, 2013.

Employers are required to provide each employee with notice about the exchange prior to October 1, 2013.  The notice requirement applies to employers that employ one or more employees who are engaged in, or produce goods for, interstate commerce and has at least $500,000 in business annually.  The notice may be provided in writing or electronically under the Department of Labor’s electronic disclosure rules. Each employee must receive notice, regardless of the employee’s health plan enrollment status and part- or full-time employment status.

The notice must inform the employee:

  1. Of the existence of the exchange, the services provided by the exchange, and contact information for the exchange.
  2. That he or she may be eligible for a premium tax credit under the Internal Revenue Code if (a) the employer pays less than 60 percent of the cost of health insurance offered by the employer; and (b) the employee purchases health insurance through the exchange.
  3. That an employee who purchases health insurance through an exchange may lose the employer’s (tax-free) contribution to the cost of health insurance offered by the employer.

To satisfy this notice requirement, the Department of Labor has provided model notices on its website, at The website provides one model for employers who offer a health plan to some or all of their employees, and another model for employers who do not offer a health plan. Employers may modify the notice, as long as it meets the content requirements described above.

If you have questions about this requirement or want help complying with the requirement, please contact your MarksNelson associate by e-mail or at 816.743.7700.

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MarksNelsonView all posts by MarksNelson
MarksNelson LLC works with clients to help safeguard and grow their businesses. Our ultimate goal is to help our clients to Move Forward. The firm provides Assurance, Accounting Services and Business Advisory, Business Valuation, Consulting, Cost Segregation, Employee Benefit Plan Audits, Litigation Support, Forensic Accounting, International Tax, State and Local Tax and Tax planning, advisory and compliance services. MarksNelson is a member of The Leading Edge Alliance, the second-largest international professional association of independently owned accounting and consulting firms, serving clients who need additional resources on a national or international level. MarksNelson has significant accounting and business advisory experience in the auto dealership, construction, insurance, manufacturing, distribution and real estate sectors. The firm was named among the 2014 Best Accounting Firms for Leadership Equity by the 2014 Accounting MOVE Project for its dedication to gender equity.