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.
We had an amazing time at Charlotte’s Loaves and Fishes Food Bank participating in the “2013 NCACPA Day of Service” event sponsored by the North Carolina Association of Certified Public Accountants. Pictured are members of the Scharf Pera staff from left to right:
Richard Sponholz (System Administrator), Linda Mas (Staff Accountant), Robin Williams (Staff Accountant), Marcus Hughes (Staff Accountant), Kelly Roberts (Staff Accountant), Robert Phillips (Managing Member), AJ Spring (Staff Accountant), Jayne Frazier (Managing Member), Lori Moose (Administrative Assistant), Brandon Hall (Staff Accountant), Loaves & Fishes volunteer, Susanne Hicks (Staff Accountant) and Julie Clay – the event organizer with TIAA-CREF. We appreciate all of those who helped us with donations and especially the amazing staff and volunteers from Loaves and Fishes for the amazing work they do.
Restaurant owners may need to rethink the practice of adding automatic tips for large parties. A new IRS regulation that starts in January now identifies automatic gratuities as service charges. That means payroll tax withholding! Find out the details in this Wall Street Journal article.
The U.S. Department of the Treasury and the Internal Revenue Service (IRS) has ruled that same-sex couples, legally married in jurisdictions that recognize their marriages, will be treated as married for federal tax purposes. The ruling applies regardless of whether the couple lives in a jurisdiction that recognizes same-sex marriage or a jurisdiction that does not recognize same-sex marriage. To find out more information about the ruling and its implications, click HERE.