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Affordable Care Act

Health Reimbursement Arrangements (HRAs) cannot be integrated with individual market coverage.

According to an article provided by the CPA Practice Advisor, employers cannot get around the Obamacare “shared responsibility” provision simply by giving employees tax-free cash to pay for health insurance from a state-run exchange or potentially any other insurance arrangement. Click the link below to read more about a new question and answer (Q&A) posted on the IRS website.

Health coverage penalty is delayed one more year for midsize employers.

Although employers will still be required to report on their workers and health care coverage in 2015, employers with 50-99 employees now have until 2016 to offer health care coverage to their employees or be subject to penalties. Last July, the shared-responsibility penalty was postponed to 2015 from its original effective date of 2014. Regardless of the delay, the mandate is coming and affected employers should still be preparing themselves.

Under the Affordable Care Act (ACA) in October 2013, employers were required to provide notification of the healthcare changes to all current employees and to each new employee at the time of hire beginning on that same date. The Department of Labor (DOL) considers notifications made within 14 days of the employee’s start date to be timely. For your convenience, the DOL has made available model notices for employers to use to satisfy the notice requirement. These model notices are available for your review on the Internet Links: New Employee Forms section of our website.

To assist in the determination of applicability for the ACA’s requirement, you may use the internet compliance assistance tool available on the DOL’s website.

For up-to-date information and guidance, please visit the DOL’s Affordable Care Act website.

For additional information, you may review this Technical Release No. 2013-02 issued by the DOL. This release provides temporary guidance regarding the requirements mandated under the Fair Labor Standards Act (FLSA) section 18B.

Last Updated: July 1, 2014


The above information provides temporary guidance on a portion of the Affordable Care Act requirements and is not all encompassing. Updates and changes will be provided to you via our website when additional information is made available. Due to the continuous developments of the provisions to the Affordable Care Act, please refer back to this webpage for the most up-to-date information or visit the referenced governmental websites above.

Any tax advice contained on this page was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local law provisions.

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