Department of Labor Waives Penalty
We have previously provided notice on the requirement to provide notice to your employees by October 1 of the coverage options now available with the new Health Insurance Marketplace. It was our assumption that if this notice was not properly provided and this omission was determined by the Department of Labor or the IRS, then an $100 penalty per infraction would be owed by the employer.
Yesterday, the Department of Labor updated their Notice of Coverage Options FAQs section to include a notice that although the employer is required to provide this notice, as of now, there will be no fine or penalty associated with not providing the notice.
The notice is fairly easy to give to your employees and with the new Marketplace, it may make sense for your employees to take advantage of the opportunities available to them. It may actually end up costing both them and you less. However, these can be complicated calculations and you should review them with both your tax advisor and health insurance professional.
Paul Neiffer, CPA
Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Walla Walla, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.
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