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ACA Requirement Starting October 1, 2013 – FLSA Section 18B Notice

Posted on: September 12th, 2013

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Any employer subject to the FLSA must provide the notice to its employees.  In general, the FLSA applies to all employers with $500,000 or more in annual revenue.

To whom does the employer need to provide the notice?

The employer must provide the notice to all employees (including part-time employees).  The employer does not need to provide the notice to an employee’s dependents.

When does an employer have to provide an employee with the notice?

For all employees who are current employees before October 1, 2013, the employer must provide the notice no later than October 1, 2013.  For all new employees hired on or after October 1, 2013, the employer must provide the notice within 14 days of the employee’s start date.

What does the notice need to contain?

The notice must inform an employee of his/her coverage options in the new Marketplace.  The notice must include a description of the services provided by the Marketplace.  Additionally, the notice must inform the employee that he/she may be eligible for a premium tax credit if he/she purchases coverage through the Marketplace.  Furthermore, the notice must inform the employee that he/she will lose the employer contribution to any health plan offered by the employer if the employee purchases coverage through the Marketplace.  Finally, the notice must mention all or a portion of the employer’s contribution for an employee’s health coverage may be excludable for Federal income tax purposes.

The Department of Labor has released two model notices which employers may use.  One model notice is for employers that do not offer a health plan (http://www.dol.gov/ebsa/pdf/FLSAwithoutplans.pdf) and the other model notice is for employers that offer a health plan to some or all employees (http://www.dol.gov/ebsa/pdf/FLSAwithplans.pdf).

If you have any questions regarding the FLSA Section18B Notice please reach out to us at 978-998-6896 or info@masspay.net.


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