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Nonstop Wellness Blog

High-quality benefits for nonprofits.

Staying ACA Compliant with New Hires

new_hire_info.jpgPhoto: Villanova.edu

When a new hire is made, there is often a litany of paperwork and to-dos that need to be completed, especially around tax and healthcare-related activities. With the ACA, it’s even more imperative to be compliant with documents and timing.

As such, below is a checklist of all necessary paperwork and due dates for new hires*.  Each time you recruit new talent, it is recommended that this checklist be referenced to ensure your organization is in lock-step with ACA requirements:

Summary plan description (SPD), with general notice of COBRA rights (COBRA rights can be provided separately)

 

Within 90 days of after coverage begins

Summary of Benefits and Coverage (SBC), and Uniform Glossary (this can provided with the SPD)

Within 90 day of special enrollment

Notice regarding availability of health insurance exchange

Within 14 days of hire date

o  Notice of special enrollment rights**

Prior to or when an employee is offered the opportunity to enroll in a group plan

o  Women’s Health and Cancer Rights Act notices**

Upon enrollment (annually)

Employer CHIP notices

Provided at the same time as the SPD

o  Notice of patient protections**

At the same time as the SPD

Notice of privacy practice for protected health information

At the time of enrollment

Not adhering to these guidelines, especially with regard to the SPD and SBC, can potentially result in penalties come tax time, something that can have a significant impact on budgets – especially for cash-strapped nonprofits.

* This does not including standard healthcare documentation that needs to be provided to all employees during enrollment.

** Model notices for these items can be found at: http://www.dol.gov/ebsa/pdf/CAGAppC.pdf

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The information and materials herein are provided for general information purposes only and are not intended to constitute legal or other advice or opinions on any specific matters and are not intended to replace the advice of a qualified attorney, plan provider or other professional advisor. This information has been taken from sources believed to be reliable, but there is no guarantee as to its accuracy. In accordance with IRS Circular 230, this communication is not intended or written to be used, and cannot be used as or considered a ‘covered opinion’ or other written tax advice and should not be relied upon for any purpose other than its intended purpose