Thursday, September 12, 2013

Stiff Penalties for Failing to Notify Employees by October 1

We're reminding you again that if you are an employer you need to notify your employees of the opening of the Obamacare exchanges.  We've done a bit more research on the consequences of failing to provide the notices.

Any employer subject to the regulations of the Department of Labor must provide notice of the opening of exchanges by October 1 to all its employees.  After that, any newly hired employee is entitled to a notice within 14 days of hire.

What employers are subject to this requirement?  For sure, we know that any employer with at least 1 employee and $500,000 in revenue must provide the notice.  To be safe, I'd do it even if my revenues were below this amount.  It's easy to do if you go to the Department of Labor site and use their forms.  A good summary of the requirement is here.

What if you fail to provide the required notice?  Fox News is reporting that the penalty could be $100 per day under the general penalty provisions of PPACA/Obamacare.  This is probably a reference to the penalties or "taxes" in 26 USC 4980D.  The notice statute itself does not seem to have any particular penalty attached to it, that's why people assume the general non-compliance penalty will apply.

The Fox story does not do justice to the threat here.  It is true the potential penalty is probably $100 per day, but that's $100 per day per employee.  If you have 100 employees and fail to give notice by October 1, you'll owe $10,000 per day until you do give the required notice.

If you have a new employee after October 1 and fail to give the required notice, you'll owe $100 for each day beyond the deadline.

So give the notice today, it will save you a bundle later.

Now for Today's Obamacare headlines.

Rightwing Rants

Cokie Roberts speculates that a "no" on Syria would have led to defunding of Obamacare.

Funding Obamacare is a pro-abortion vote.

Conservatives need to refocus on Obamacare.

Hard to pick worst part of Obamacare.

Leftwing Cheerleading

White House economists claim Obamacare spurs hiring.

More Republican sabotage of Obamacare.

White House tires of Republican sabotage of Obamacare.

Hard News

GOP to unveil alternative to defunding PPACA.

New Jersey seminars on PPACA coming up.

Obamacare subsidy recipients may have to pay advanced credits back.

International Association of Fire Chiefs asks for clarification on treatment of volunteer firefighters under Obamacare.

Obamacare glossary.

Healthcare data hub is ready.

CBS News reports that employers expect hiring to pick up despite Obamacare.

Exchanges expected to have rocky start.

Major contractors project confidence on launch of exchanges.

Big insurers flee exchanges.

For Industry Insiders






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