Discussion:Obamacare Exchange Notice Requirement

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Discussion Forum Index --> Basic Tax Questions --> Obamacare Exchange Notice Requirement


Discussion Forum Index --> Tax Questions --> Obamacare Exchange Notice Requirement

FLAcct (talk|edits) said:

8 September 2013
This is the last thing I want to deal with one week before the Sept 16th deadline, but...I'm getting emails and calls from clients who have been sent information by their insurance providers about the requirement to give out the Exchange Notices. They don't want to read the volume of information that is being sent to them, and probably wouldn't understand it even if they did, - they want me to figure out if they need to send out these notices. I am also sure that I have many clients who have not received any information on this subject, but are required to send out notices. Are we, the accountant, supposed to get in the middle of this??? My interpretation of the requirement is that any business with $500,000 or more in gross sales must send out the notices. I have many clients in this category and it would take quite a bit of time to explain this to each one. Are you guys going to spend your time on this???

WEISSEA (talk|edits) said:

8 September 2013
"Are we, the accountant, supposed to get in the middle of this???"

According to a recent IRS Tax Talk today webinar, you would have to get a special signed disclosure agreement from the client prior to discussing anything related to the health insurance aspects of ACA.

Ckenefick (talk|edits) said:

8 September 2013
If the attached is what you're talking about, there's links to the model notices. Give the links to your employer clients, tell them to print out the applicable notice, fill it out, and then send it to the employee. If you want the cover letter that I used to relay this info to the clients, just send me a private message.

http://www.taxalmanac.org/index.php/Discussion:ACA_Required_Employee_Communication_for_Oct_1

Gazoo (talk|edits) said:

9 September 2013
Are you guys going to spend your time on this???

I would not spend any uncompensated time on anything I didn't want to spend it on. After all, the client has the choice to read it themselves; and if they did, they wouldn't owe you anything and they wouldn't eat up your time.

Or they could go to a *gasp* lawyer and have her explain it to them.

The vast majority of clients who can gross over 500K a year can read a government document. They may pretend they just can't do it, but they can do it. It's amazing what they can understand when it comes to earning a dollar, or learning all about golf equipment, or fishing techniques, or hunting equipment, or gadgets, or cars and trucks.

Natalie (talk|edits) said:

September 12, 2013
My firm received a sample notice that I am required to give to my employees. If your clients look at the different pages, they may also see a sample they can use.

Fsteincpa (talk|edits) said:

12 September 2013
We sent out copies of the sample letters to our clients with a note that if they wish assistance, for a fee we would be happy to assist.

Gary, what kind of signed disclosure agreement were they talking about?

JR1 (talk|edits) said:

September 12, 2013
I'm not seeing that this applies unless you're the 'large' employer. Where is anyone finding this requirement for employers with a mere 500k in sales?

Jesella (talk|edits) said:

12 September 2013
This technical release from the Department of Labor specifies who is subject to the Fair Labor Standards Act (and the reporting requirement). It mentions the 500k threshold. I find it quite vague, personally.

[1]

The good news is the FAQ that says there will be no penalty for not issuing these notifications.

[2]

Captcook (talk|edits) said:

12 September 2013
According to a recent IRS Tax Talk today webinar, you would have to get a special signed disclosure agreement from the client prior to discussing anything related to the health insurance aspects of ACA.

That's the biggest load of crap I've ever heard...professionally speaking.

JR1 (talk|edits) said:

September 12, 2013
Thanks, Jesella. That's all I need to know, since [2] clearly supercedes [1] so I don't have to care.

Captcook (talk|edits) said:

12 September 2013
There has been a lot of press stating there are penalties relating to these notices in the last week. I received 5 phone calls on it yesterday. It was nice the DOL clarified it. I had researched whether there were any penalties on this over a month ago and couldn't find anything stating there was, but was starting to second-guess myself a little.

H.D. Freifunk (talk|edits) said:

12 September 2013
There has been a lot of press stating there are penalties relating to these notices

You have to wonder where some of this press comes from. What I mean is, who are the people of influence who can get this kind of false infomation printed....or internetted? Sounds like another false rumor about Obamacare. Suspicious. But I don't know.

Captcook (talk|edits) said:

13 September 2013
I had the same thought.

Smog (talk|edits) said:

16 September 2013
1. Correct on no penalties, but civil action may be brought. Complaints for not sending the notices might cause a DOL audit. DOL audit could be worse than penalties.

2. For those that offer insurance, is the full page 3 optional or just question 13?

3. For those that offer insurance, page 3, questions 14 and 15 - do they make any sense if testing/employer penalty has been delayed a year, and how do you answer if you have hourly under 29 hours per week but they do not qualify as eligible (salaried).

4. Can you hand deliver or attach the notice to paychecks? DOL only mentions by post office mailing or electronically. We have over 10 locations.

5. Can you print on front and back of the paper? DOL does not say.

6. Does anybody have a completed notice? Struggling on accepted language for the definition of eligible employee and dependents in plan language. State insurance code definition of "dependent" does not follow ACA definition. State does not follow Supreme Court ruling on DOMA.

Thanks for the help (Spent 5 hours printing just under 1,000 envelopes on Friday).

Captcook (talk|edits) said:

16 September 2013
I'm sending my clients to their insurance professional to answer these questions. They are good questions and for many situations with small businesses the notice doesn't lend itself well to allow their situation to be described. The insurance folks I've spoken with and for whom I have a high degree of respect have solid answers to these questions.

JAD (talk|edits) said:

16 September 2013
I have done the same. My concern is for my clients who do not offer insurance and therefore do not have a relationship with an insurance specialist. My concern is also for how the clients come to perceive me. It is appropriate for them to expect me to address the issues regarding the types of income that are subject to the additional tax. I do not want them to rely on me for instructions on how to comply with DOL and FLSA issues.

JR1 (talk|edits) said:

September 16, 2013
No kidding, Jessica!


I have several clients over a half mil in sales, but they still don't have more than half dozen employees...so it's not like anyone is unaware of coverage!


Bureaucrats who've never worked. (was going to add, in the real world, but seems redundant)

H.D.J. Friefunk (talk|edits) said:

16 September 2013
You should send your small companies to a law firm for this information to CYA. However, if they are a normal, small business law firm they will know even less than you do...unless they have taken some special CLE on the topic. Or you could send your small companies to a bigger law firm which might know the law. However, after your small business clients pay the big law firm fee, they will emerge as an even smaller, small company.

JR1 (talk|edits) said:

September 16, 2013
ROTFLMAO!

H.D.J. Friefunk (talk|edits) said:

16 September 2013
lol. I liked the intent behind Obamacare. To try to help millions of uninsured Americans get insurance. It also has some other excellent provisions. I realize now that no politician looked into the cost of the premiums and business overhead to run the law. The truth is that they had no idea how much it would cost. As I've said before, I don't know why the Elephants would want to repeal it....they can bash longer if they just let it linger and fail.

Hillary Clinton was hung on her own petard to trying health reform I, and the irony is that Health Reform II could end up costing her a good chance at getting elected president. In other words, it's looking Clinton is going to suffer for this twice, and of course, Biden won't win. Or I don't think he will.

My understanding is that even Buffet says it needs to be fixed, and he's a Democrat. He says it will hurt the middle class and damage the economy. This is my understanding, I have not seen his exact words. Well, we know that it will not be fixed in this political climate. So conclusions are easy to draw as to where this could go. As Benejamin Franklin would say, us Democrats paid too much for our toy whistle like he did when he was a boy. The intent was good, but no one bothered to really look at the cost (particularly in the early years of implementation). Why should they? Don't they all get special govt. insurance on the Hill and in the White House?

I don't not consider these remarks political. It merely states facts, and all laws are political. This is a tax law forum.


“In short, I conceive that great part of the miseries of mankind are brought upon them by the false estimates they have made of the value of things, and by their giving too much for their whistle.” Benjamin Franklin

Captcook (talk|edits) said:

16 September 2013
The only part of the notice needed insurance professional assistance is page 3, which only applies if they currently offer coverage. If they don't offer coverage, the only information they must provide is a company contact. In the latter case, they need no direction from an insurance professional.

H.D.J. Friefunk (talk|edits) said:

16 September 2013
Thank you Capt. for bringing this back down to earth. I was really referring to the individual malestrom which I suspect is coming on Oct. 1 which was probably inappropriate to disucss at that point.

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