The Patient Protection and Affordable Care Act will bring plenty of changes for HR departments everywhere that they will need to not only understand but also coordinate with payroll. Although payroll and HR departments stayed separate in the past, the PPACA will force them to work together more. There are several important notices associated with the act that employers should understand.
Exchange Notice
The exchange notice stated that all business owners must notify their employees about exchanges before the first day of October in 2013. If a company has new hires, the notice must be provided to them within 14 days of being hired. With this notice, employees are able to learn how to obtain coverage through exchanges. Three-page model exchange notices are provided by the Department of Labor. However, the third page’s information is optional.
SBCs
Employers are now required to provide a summary of benefits and coverage to each worker annually. These forms are intended to simplify the process of comparing benefit plans, which makes it easier for participants to choose.
Revised COBRA Notice
There has also been an updated model election notice provided by the DOL. It informs beneficiaries about PPACA coverage options.
6055 And 6056 Forms
The Internal Revenue Service will provide guidance about notices of their revenue requirement sections in the IRS code. Information gathering is set to start in 2015, which means the first reporting of 6055 and 6056 will not happen until 2016. The proposed regulation should have the information about what needs to be reported to the IRS before a final ruling is made. This will give employers ample time to prepare the information for payroll. Anyone who offers minimum essential coverage reports with a 6055, and 6056 coverage is applicable to larger employers. Experts say there are overlaps between the two types of reporting. However, all sizes of businesses will be affected by the notice requirements.
W-2 Forms
Although employers are already supposed to be including the cost of coverage on W-2 forms, many have not yet started doing so. However, employers who have less than 250 W-2s from the past year are exempt. This is subject to change from one year to the next, so even small business owners should check every year to see if they need to include this information.
Every employer needs to consider these requirements to avoid unwanted attention from the IRS. To learn more about these requirements please visit your BRb Client Access Portal for requirements and sample notices. Question? Please reach out to any of the Broad Reach Benefits Team. We are here to guide you and your organization through this evolving Health Care Reform process.