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

Tuesday, September 10, 2013

Small Business Guide to Obamacare--Kindle Version

I'm working to get more details on the required disclosures for employers, with the deadline of October 1.  I want to give you all details on the penalties for failing to comply.  We should have that for you tomorrow.

In the meantime, the Small Business Guide to Obamacare now has a Kindle version.  It's available at Amazon, just click the box to the right.  If it's not there now, it should be in a few hours.

Here are Today's Obamacare headlines.

Rightwing Rants

Obamacare relies on outdated assumptions.

Obamacare rollout gives marketing a bad name.

Obamacare navigators and identity theft.

Mort Zuckerman predicts 50% of workforce will be part-time.

Conservative plans to reform health care.

Time Warner dumps retirees into exchanges.

Obamacare's job destruction continues.

IBM dumps retirees into exchanges.

Exempt America rally coming up.

Leftwing Cheerleading

Obamacare will make us smarter healthcare consumers.

Understanding Obamacare in 3 1/2 minutes.

Cutting through the Obamacare hysteria.

Republicans obstruct Obamacare and that's bad.

HHS and Obamacare.

Hard News

What retirees need to know about Obamacare.

How Obamacare will change your life.

Obamacare tax guide for individuals.

IBM and Time Warner end coverage for retirees.

For Industry Insiders

Delaying individual mandate would save $35B.

Monday, September 9, 2013

More on Online Marketplace Disclosures to Employees

The other day I wrote about the mandatory notification the Department of Labor is requiring of most employers regarding the opening of the health insurance exchanges.  There, I give you links to the Department of Labor site so that you can find out what you need to do as well as some forms you can work from.  The deadline is October 1, which is right around the corner.

I received my notice from Saginaw Valley State University a few days ago.  Unlike many business regulations, Obamacare's employer mandate applies to not for profits as well as for profit businesses.  It even applies to state employers like SVSU.

I read through the notice and it's about as clear as it can be.  Unfortunately, that might not be clear enough for most people to understand exactly what's happening.  Perhaps it should say something like this:

1.  If you have insurance through employment at SVSU, you can drop that coverage and get a policy on the exchange but you will not be eligible for any subsidies and will have to pay full price.

2.  If you do not have insurance through SVSU and are not eligible for it, you can go to the exchange beginning October 1 to get coverage beginning January 1.  You might be eligible for a subsidy to lower your insurance costs depending on your income.

I'm just not sure most people will know phrases like "benefits eligible" or "exchange marketplace" or "open enrollment period" mean.  Just a hunch, sometimes people know a lot more than we give them credit for.

Now for Today's Obamacare headlines:

Rightwing Rants

Leftwing Cheerleading

Hard News

For Industry Insiders