GNYADA July 2014 Newsletter

Prepare Now for Affordable Care Act Reporting

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Information Reporting on Employer-Sponsored Coverage If an employer offers a fully insured group health plan, the health insur- ance issuer is required to submit annual information reports to the IRS identifying who is covered. The first reports must be submitted in 2016 for the 2015 year. The returns must be furnished to employees by January 31, 2016 and filed with the IRS by February 28, 2016 if filed on paper or March 31, 2016 if filed electronically. Information Reporting on Offers of Coverage by Large Employers Large employers will have to report to the IRS each year on anyone who was a full-time employee for one month or more, including whether that person was offered health coverage, and, if so, the lowest fees employees could pay for coverage that meets minimum value requirements.

The first reports must be furnished to employees by January 31, 2016 and submitted electronically to the IRS by March 31, 2016. For purposes of determining whether an employer is a large employer, the law defines an entire controlled group as a single applicable large employer. However, for purposes of determining how the members of the controlled group are to be evaluated for penalty liability, each member of the controlled group will report separately.

The Affordable Care Act (“ACA”) creates a new employer "play or pay" requirement with respect to health coverage and it also requires new types of annual tax information reporting. Those reports include: Employers that offer self-insured health plans must report on every individual covered under the plan. Large employers that are subject to the play or pay requirement must report to the IRS each year on every individual who was a full-time employee for one month or more during the year. The IRS requires employers to submit the first set of information reports in 2016 . Start planning now because it will be a challenge to cap- ture all the data required beginning January 1, 2015. n n

For assistance with your health insurance needs, contact Mike

Conway at GNYADA Insurance Brokerage. 718.746.8100 or mconway@gnyada.com .

21 Changes to COBRA Model Notices The U.S. Department of Labor (DOL) has released proposed There are no “substantive” changes to existing COBRA rules or

If you use GNYADA’s Insurance Brokerage’s new COBRA notice service, you will be automatically compliant with these changes. Contact Michael Conway to see how you too can improve your employee benefit package and save money.

changes to the COBRA notification regulations. The changes pertain to two areas: New content about the availability of state health insurance exchanges. It includes n additional detail on top of the changes to the model general notice released last year. The changes also update the sec- tions describing basic COBRA rules in an attempt to make them more easily understood. n

processes. These model notices will be required when the changes are approved and finalized. They repre- sent a best practice approach. There is no effective date for the new model notices yet. Any dealership that is utilizing an outside service for their COBRA administration can check to see if they are incorporating the proposed changes in their COBRA documents. The updated model COBRA notices are available in the COBRA section on the DOL website.

Michael can be reached at mconway@gnyada.com or 718.746.8100.

Greater New York Automobile Dealers Association • www.gnyada.com

The Newsletter • July 2014 11