The Affordable Care Act health care reform law required you to provide employees with notices regarding the health insurance exchanges by Oct. 1. The Department of Labor (DOL) first posted an FAQ absolving employers that didn’t provide these notices from penalties. However, later clarifications by the DOL imply that this isn’t a consequence-free zone—failing to provide notices may be a catalyst for a plan audit, or worse, penalties levied by the IRS.
• PAYROLL PRACTICE TIP: The lack of penalties aside, providing notices to employees can head off many questions they may now have about the health insurance exchanges, which became operational last month. The DOL created two model notices you can use.