The Affordable Care Act (ACA) Oct. 1, 2013 Exchange notice deadline is mentioned seemingly everywhere, including several posts on this blog. Last week, we gave you a link to the Department of Labor (DOL) sample notices to help you ensure your notice is compliant. In a recent post on Lexology, post authors Alden J. Bianchi and James M. Nicholas mentioned two lesser known insights we thought would be good to share.
A time-saving tip:
Save yourself some time later on, by providing whether the health care coverage your company offers meets the minimum value standard and whether the cost of coverage is intended to be affordable in Part B of the DOL sample notice. Providing this information up front can save you time down the road responding to exchanges’ requests when processing applications.
An interesting fact:
Review your independent contractors to make sure you know if you need to provide a notice to them or not. As presented by Bianchi and Nicholas, “The question of who, exactly, is an employee is an important one. The Act’s exchange notice requirement amends the FLSA. Thus, while the Internal Revenue Code and ERISA look to the ‘common law’ standard, applicable court precedent interpreting the FLSA’s use of the term ‘employee’ relies on the broader, ‘economic realities’ test. Accordingly, an individual is an ‘employee’ for FLSA purposes if he or she is economically dependent on the business for which he or she performs personal services. Thus, individuals properly classified as independent contractors for tax purposes may nevertheless be employees (to whom notice must be provided) for FLSA purposes.”
The clock’s ticking. Make sure you are ready!