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Issue: # 22 October 8, 2008
78 pleasant
Greetings!
 
 
Special Announcement .... Employer HIRD Forms Now On Line
 
This is a special announcement newsletter .  The annual Employer Health Insurance Responsibility Disclosure (HIRD ) & Fair Share Contribution (FSC) packets are now being mailed to employers of Massachusetts. 
 
Many employers had questions last year, so please contact us for assistance.
If you have any questions, e-mail Bill or Vanessa.  To learn more about Advantage Benefits, click here.     Many of our clients have found these newsletters to be quite helpful and we have now set up a link to hold all the archived newsletters on-line that can be accessed at anytime. 
 
If you know anyone, who may find this information of interest, please forward them this newsletter (there is a link on the bottom), and they can subscribe themselves.  
 
Sincerely,
 

Bill Randell, CLU, CHFC             Vanessa Costa, CLU,CHFC
Advantage Benefits Group, Inc. 
HIRD Filing 
Deadline November 15, 2008
 
The second annual filing of the Employer HIRD (Health Insurance Responsibility Disclosure) and FSC (Fair Share Contribution) report with the DUA (Division of Unemployment Assistance) began on October 1, 2008.  Filing is completed on line, and determines whether the employer is subject to payment.  Recently you may have received a letter from the Division of Unemeployment regarding your group health insurance with your DUA number.   
 
This letter gives you instructions to complete ON-LINE filing by November 15, 2008. Click here to access the on-line filing, please note you will need this DUA number to get started.   Only employers with eleven or more full-time employees, or part-time equivalents, are required to file.   The Commonwealth considers one full-time employee to work 2,000 hours so eleven or more full-time employees, or part-time equivalents, would work equate to 22,000 hours. 
 
The first question on the form asks for the hours worked between October 1, 2007 through September 30, 2008.   Your payroll company should be able to provide this data.    If your answer to the first question is less then 22,000 hours, you will be directed to the end of the questionnaire and not be subject to the new Massachusetts health insurance requirements.  
 
On the other hand, if your hours worked is equal to or more then 22,000, all of the questions will need to be answered.   Other questions include:  
  •  Number of eligible employees for the employer health insurance plan.
  •  Number of employees participating in employer health insurance plan. 
  •  Employer contribution level.
  •  Confirmation that you have a Section 125 Plan in place.  
 Even if you do not receive a letter from the DUA, but have exceeded the 22,000 threshold during this 12 month period.   You are required to complete the HIRD filing return.   Make sure you get this done before November 15, 2008!!
 
Employee HIRD Forms
Waivers--You Need to Have Them
 
Most employers have employees sign a waiver when not participating in the employer sponsored group health plan.   An employer must have a signature on file to verify they have been offered the plan.  This form is commonly referred to as a "waiver" form. 
 
Take a moment to review who is eligible for the group health plan, then cross-reference with your health insurance bill to determine who does not participate.  Each of these employees should have a signed waiver (Employee HIRD).  The Commonwealth has an official waiver form, click here.  
 
Not only is this a requirement of the law, but you should have these on file as employees will  incur penalties from the Commonwealth of Massachusetts if they do not comply.  Last year (2007) the penalty was only $290, this year (2008) penalties have increased as follows:
  • $56 each month or $672 for an entire year for people age 26 or younger.
  • $76 each month or $912 for the year for people age 27 or older. 

This signed waived may be be needed by the employer to prove health insurance was offered, if an employee maintains otherwise.   Keep in mind that employees, who are not eligible for the group health plan (part-timers), are not required to sign waivers.  

Lastly although employers with less then 11 full-time or part-time equivalents are not required to have an employee HIRD form, we highly recommend that this is done anyhow for the employer's protection.