Exchange Notification for Your Employees

In our continuing effort to make sure our clients are up to date and compliant with all the changes occurring with Health Care Reform, we are sending you this information regarding the mandated Exchange Notification.

 

You may have already discussed this with someone from our office and may already have received the form. But to ensure that all our clients have the information, we felt it better to provide it to everyone to make certain no one is missed. Our apology if this is duplicate information.

Part of the Health Care Reform laws state that all employees must be informed about the existence of the Exchange and that they could apply for individual insurance through that exchange. The law regarding the notification is very complex but the Department of Labor has issued a "model" notification letter that you can use to fulfill your obligation as an employer in this regards. Attached are the notification letters including one in Spanish, if needed.

The deadline to provide this to your employees is October 1st and it also must be given to all new hires after that date. There is some information that would need to be completed by you, the employer, on the form.

Steps to completing this document:

Page 1 towards the bottom under the "How Can I get More Information?" section, after the word "Contact", you would put in the name of the person in charge of the benefits at your company.

Page 2 asks for some basic information about your company in the shaded area. Below that it asks for some information about who would be eligible for coverage at your company. The typical answers would be as follows:

 - As your employer we offer a health plan to: check "Some Employees. Eligible Employees are:" Under this put in "Employees working X number of hours per week" where ‘X’ is the minimum number of hours required for an employee to be eligible for medical insurance.

 - With respect to dependents: check "We do offer coverage. Eligible dependents are:" Under this put in "Domestic partners, spouses and children under age 26". It is important to remember that this section is only asking whether dependents are eligible to enroll in the plan and does not refer to whether or not your company pays any part of the dependent premium.

 - The last check box that reads "If checked, this coverage meets the minimum value standard,…" should also be checked.


Again, the deadline for employees to receive this information is October 1st so we suggest that you distribute this information to your employees whatever way works best for your company’s situation.

 

Since there is no personal information on the form, a mass email is acceptable. It can also be included with paychecks/paystubs during the month of September. It should, however, be included with the forms and information you provide to new hires going forward.

As always, we are available for any questions or concerns you may have. So feel free to call or email us at 925-757-6018 or send me an email at jblanco@smeefinancial.com

 

Juan Pablo Blanco, Grady Elliott and the Rest of the Smeed Financial Team
201 Sand Creek Rd. Ste. E
Brentwood, CA 94513
925-757-6018
Jblanco@Smeedfinancial.com

 

 

 

SMEED CPA, Inc | 201 Sand Creek Road, Suite F | Brentwood, CA 94513
The Next Frontier CPA Firm | www.SmeedCPA.com | info@smeedcpa.com
Phone: 925-634-2344 | Fax: 925-634-2346 | Cell: 925-207-6771