The Election is Over -
Where Do We Go From Here?
The McCart Group issues regular updates, information and guidance, not just on details related to regulations, but also practical help for employers to use to implement the policies and procedures required by the ACA.
In another step in our continuing effort to help employers navigate through these changes, we are offering a webinar on the election and the future of the ACA on November 28th and November 29th.
Meanwhile, this Issue Brief will provide you with important guidance you can utilize in determining the appropriate course of action for your organization, as it pertains to the Affordable Care Act legislation.
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With the re-election of President Obama, and very little change in the make-up of Congress, the path to full implementation of the Affordable Care Act (ACA) now seems clear. Many employers may have not acted aggressively to address the impact on their employer plans due to the questions about the future of the law and because some of the most significant provisions of the ACA aren't effective until 2014.
Now employers must act quickly to prepare. First, employers must understand how the law affects (or does not affect) them. Then they must implement any of the necessary changes or adjustments to benefit strategies. Fortunately, no matter what you think about the law, we have been studying and planning for its effect on employers for over two years. Now we are prepared to help employers move forward to implement whatever is necessary for each particular employer.
The ACA affects employers in different ways depending on their size, employee demographics, current benefit strategy, and where they are located. Consequently, there is no way to write a single update that is specific to the issues facing any particular employer. This summary is designed to remind employers about important aspects of the ACA that we will all be addressing over the next 12-18 months, and to refocus attention on issues especially important to many employers.
Issues Employers Must Address In the Short Term
A number of ACA provisions are taking effect now, or in the very near term. The first thing an employer must do is make sure that any of these provisions relevant to that particular employer are addressed as soon as possible.
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ACA Provision
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Employers Impacted
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Effective Date
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Summaries of Benefits and Coverage (SBC)
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All Employers
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Plan years beginning after 10/01/2012
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W-2 Health Plan Reporting
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Employers who filed 250 W-2s or more for 2011 tax year.
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2012 tax year
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Increase in Medicare tax for individuals earning over $200,000 ($250,000 for joint filers).
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Employers are required to withhold additional tax for employees whose compensation at that employer exceeds limits.
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01/01/2013
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$2500 limit on pre-tax payroll deductions for Section 125 health FSA.
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Employers who offer FSAs
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Plan years beginning on or after 01/01/2013
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Read the FULL ISSUE BRIEF for Additional Regulations and Guidance Expected.
While every effort has been taken in compiling this information to ensure that its contents are totally accurate, neither the publisher nor the author can accept liability for any inaccuracies or changed circumstances of any information herein or for the consequences of any reliance placed upon it. This publication is distributed on the understanding that the publisher is not engaged in rendering legal, accounting or other professional advice or services. Readers should always seek professional advice before entering into any commitments.
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