Q: With only 12 employees I know that I won’t be affected by the Affordable Care Act (ACA) and I’m not required to offer employees health insurance. However, I’m getting lots of contradictory information on whether the notification requirement (which mandates employers notify their employees about the new law by October 1) would apply to me even if the rest of the law doesn’t. Can you clarify?
A: Great question. And even though it’s counter-intuitive, (why should employers unaffected by a law be required to notify their workers about such law?) the answer is, yes, you’re required to notify your employees.
Like you, many small business owners are unaware of the requirement or are under the misconception that it doesn’t apply to them because they’re too small. But in fact the notification requirement applies to any employer with one or more employees.
But don’t despair. The Dept of Labor (DOL) has prepared two ready-made notices. One for employers who DO offer health insurance (a 3-page pdf, 3rd page is optional) and another (one-page pdf) for those that do not.
Notices can be downloaded and printed, either for distribution in person or for mailing to employees. Electronic distribution is a bit more complicated, so skip it for now. And, anyone you hire after October 1, should get the notice within 14 days of hire.
Beware: There’s been much misinformation about this law –not just from those with a political ax to grind but from those who want to make a quick buck. Some want to sell you posters and notices that you can get for free at government sites, and try to scare you into buying something to avoid a “fine or penalty of $100 per employee”. But it’s not true. The fact is that as of Sept 12, 2013 the DOL said “there is no fine or penalty under the law for failing to provide the notice.”
Does this mean you shouldn’t comply? I think it’s best to play it safe when dealing with Uncle Sam. I recommend that even if there is no fine you still notify your employees and use the government form while you’re at it. Why risk getting it wrong?
Find related links at http://www.dol.gov/ebsa or get forms under Free Resources at evadelrio.com
