COMING SOON TO AN HR DESK NEAR YOU: Health Care Reform Deadlines
HR directors and business executives and managers, are you ready for some fun?
Well, this blog post isn’t really going to help you out with that, we are sad to say. But, if you want to get your company ready for the new provision of the Affordable Care Act , well then, we’ve got you covered.
“Many of us were waiting to see how the election might change the reform provisions. But reform is here to stay, and it is critically important for companies to understand how the new regulations will impact them specifically,” says hireVision’s Director of HR Partnering Services Kelly Coblentz, PHR.
We read an excellent article on this over at EmployerLinc.com that highlighted three major changes coming down the pike soon:
COMING CHANGE FOR 2013:RESOURCE:
|1.||A $2,500 cap on health flexible spending accounts (FSAs) is effective for plan years that begin after December 31, 2012.||Download IRS FSAs notice|
|2.||A summary of benefits and coverage (SBC) must be provided to all plan participants and applicants, and that document must be in a uniform format that does not exceed four double-sided pages in length and must use easy-to-understand terminology. The SBC must also clearly and accurately describe benefits and coverage under the plan, including such things as cost-sharing provisions, exceptions to coverage, and coverage examples. The law applies beginning with the first open enrollment period beginning on or after September 23, 2012.||Download official DOL SBC template|
|3.||Employers are required to report the aggregate cost of applicable employer-sponsored coverage on employee W-2 forms, beginning with 2012 Form W-2s issued in January 2013. The law applies to private-sector employers, churches and other religious organizations, and most federal, state and local government entities. It specifically does not apply to employers who issued fewer than 250 W-2’s for 2011, church plans that are not subject to COBRA continuation of coverage requirements, or federally recognized Indian tribal governments or tribally chartered corporations owned by such tribes.||View IRS information on W-2 reporting of employer-sponsored health care coverage|
Coblentz adds that, in regards to the W-2’s, while this initially only impacts employers who generated 250+ W-2’s in 2011, the same requirements are scheduled to impact small employers in January 2014. Therefore, they may want to work with their payroll provider to determine if anything needs to be set up within their system prior to the beginning of 2013. The EmployerLinc article also mentions penalties similar to those for failure to furnish a correct Form W-2 may apply for lack of compliance with these new requirements. To avoid running into such a problem, prepare your company and your HR staff for this new reporting requirement now.
For more information on the Affordable Care Act from the U.S. Department of Health and Human Services, click here.
Need help managing your human resources functions? hireVision’s HR process management outsourcing services can help.
hireVision provides human resources outsourcing services that help you navigate those tricky compliance waters and build better employee relations at the same time. If you are looking to outsource hiring or implement strategic hiring initiatives, we can help you with that too. Contact us today for more information about the benefits of outsourcing HR functions, what HR outsourcing can do for your business in particular or about any of our many HR DirectLink services.
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