Affordable Care Act News

Employer Reporting and Penalty Provisions Delayed Until 2015!
The announcement was made on July 2, 2013 by the US Department of the Treasury on behalf of the Obama Administration

Basic ACA Information

Beginning January 1, 2015 under the Affordable Care Act, employers with more than 50 full-time employees and/or a combination of 50 full- time equivalents will be mandated to provide affordable healthcare coverage to all employees working 30-plus hours per week (Employer Shared Responsibility Provisions).  Employers who employ fewer than 50 full-time or full-time equivalents will not be subject to the Employer Shared Responsibility provisions.

Employers will determine each year, based on their current number of employees, whether they will be considered a large employer for the next calendar year.  For example, if an employer has at least 50 full-time employees, (including full-time equivalents) for 2014, it will be considered a large employer for 2015.  There is a 3-12 month look-back period to determine the number of full time employees or full-time equivalents.

This means that for 2014, employers with 50 or more full-time equivalent employees will not be subject to a penalty if they do not offer health insurance to their employees, or if they do offer insurance and it fails to meet the affordability and minimum value standards.  Also for 2014 the employers reporting requirements relating to the health insurance that an employer offers will be voluntary until 2015.

Employer ACA Resources
Our Affiliate AFLAC has created extensive training materials to help you understand what you need to do to comply with the Affordable Care Act requirements. We have created a few links to the AFLAC resources that have been helpful to our clients.

Complete Employers Guide to Health Care Reform:

On Oct. 1st 2013 the first ACA employer responsibility was implemented, which was to communicate information to current employees and new hires about the new Health Insurance Marketplace. Follow the link below to find all the information you need and letter templates you can issue to your employees:

With all the Healthcare Reform  going into effect, this is a great time to make some company wide health insurance changes, AFLAC has provided a great checklist tool for companies to use, just choose the checklist that fits your employee count:

You can check out AFLAC's full line of resources by Clicking Here.

Employer Responsibilities in 2013 and 2014
The ACA Places three requirements on employers to disclose information to employees either at time of hire or by Oct. 1st 2013 for current employees if not previously notified.

   1. Employers must provide written notice informing employees about the state's Exchange, including a description of how the employee may contact the Exchange for assistance.
   2. The employer must notify employees if the plan offered by the employer is inadequate, meaning it does not meet the actuarial value of 60%. The employer must let employees know that they may be eligible for a premium tax credit and cost sharing reduction if they purchase a plan through the Exchange.
   3. Employers must notify employees that if they purchase a health plan through the Exchange, the employee may lose the employer's contribution to health benefits offered by the employer.

AFLAC has put together a complete tool kit to help employers
communicate all this information to their employees.

Please Note:
This material is intended to provide information about an evolving topic and does not constitute legal, tax or accounting advice regarding any specific situation. We at Eagle Payroll Service Inc. encourage our clients to seek the advice of their legal or tax advisers or accountants in regards to specific situations and to regularly visit
for additional information.

Important Message
For Massachusetts Employers

In MA employers of 11 or more full time equivalent employees that do not provide health insurance may be subject to penalties.

Follow the link above to get more information.