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EmploymentUpdates and News

February 2013

An Employer’s Guide to The Patient Protection and Affordable Care Act (“PPACA”)

Starting January 1, 2014, applicable large employers must offer affordable health care coverage to full-time employees and their qualified dependents. Failure to do so will subject these employers to penalties.

The PPACA is a long, complex law, drafted and passed with little oversight or consideration into the practical implications of its provisions. The articles in this newsletter explain how an employer determines its obligations under the PPACA, how an employer determines which employees must be offered health care coverage, the type of health care coverage employers must offer their employees, how to determine if the health care coverage is “affordable,” information that employers must provide to their employees, and finally, what penalties can be assessed against an applicable large employer who does not offer “affordable” health care coverage to its full-time employees.

During the course of the year, Klinedinst’s employment attorneys will include in its monthly Employment Newsletter additional information on these topics, and other PPACA topics that impact employers. Klinedinst’s attorneys can also answer your questions about how the PPACA specifically impacts you and your company, and steps your company must take prior to January 1, 2014, the effective date of the primary sections of the PPACA.

 

What Are Employers’ Obligations Under the Patient Protection and Affordable Care Act (“PPACA”) – Negotiating the Maze

In 2011 the United States Supreme Court upheld the Patient Protection and Affordable Care Act (PPACA), commonly referred to as “ObamaCare.” The major provisions of the PPACA become effective on January 1, 2014. Employers need to determine if the PPACA applies to them, and if so, whether to comply with the PPACA or pay the resulting penalties for non-compliance. This article provides a brief overview of the PPACA. Click to Read

 

How to Calculate the Number of Employees for Purposes of the Patient Protection and Affordable Care Act

Only applicable large employers are liable for penalties under the Patient Affordability and Affordable Care Act (“PPACA.”) Section 4980H(c)(2) of the Internal Revenue Code defines an applicable large employer with respect to a calendar year as an employer that employed an average of at least 50 full-time employees... Click to Read

 

How to Determine if an Employee is Full-Time for Purposes of the PPACA

An applicable large employer is required to offer affordable health care coverage only to its full-time employees. For many employers, including staffing companies, retail establishments, and restaurants, it is not always clear if a current or new employee is full-time or part-time. Click to Read

 

Employer Responsibilities to Provide Health Insurance Under the Patient Protection and Affordable Care Act

Employers of at least 50 full-time equivalent employees must offer health care insurance coverage to full-time employees, or pay a penalty. A full-time employee works an average of at least 30 hours per week. The coverage must pay for at least 60% of covered health care expenses, and employees may not pay more than 9.5% of their total household income for the coverage, for it to be considered “affordable” under the act. Click to Read

 

“Affordability” Under the Patient Protection and Affordable Care Act

Beginning January 2014, employers with 50 or more full-time or “full-time equivalent” employees (otherwise referred to as “applicable large employers”) will be subject to the Employer Shared Responsibility provisions of section 4980H of the Internal Revenue Code (added to the Code by the Patient Protection and Affordable Care Act (“PPACA”)). Click to Read

 

Employer Notice Requirements Under the Patient Protection and Affordable Care Act

Employers must provide notice of State Exchanges to all new hires and current employees. The original deadline to provide notice to employees was March 1, 2013. This deadline was extended by joint federal agencies, with the expectation that the notices will now be due in late summer or fall 2013. Click to Read

 

Penalties Beginning In 2014 for Applicable Large Employers Not Offering Affordable Coverage Under The PPACA

Beginning in 2014, the PPACA requires applicable large employers, defined as employers with at least 50 full-time equivalent employees, to provide “affordable” coverage to their employees. If applicable large employers either fail to provide coverage or fail to provide “affordable” coverage, the PPACA imposes monetary penalties on the applicable large employer. Depending upon the company’s number of full-time employees, the penalties can be onerous. Click to Read

 

If you would like to discuss these or any other employment law matters, please do not hesitate to contact any member of Klinedinst's Employment Law Department.

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