Tuesday, September 3, 2013

4 'ObamaCare' Actions To Take Now

Many of the provisions of the Affordable Care Act -- so-called ObamaCare -- will be going to affect in the coming year. Despite its potential benefits for Americans, the law does pose some issues for employers. 

During the AICPA Not-for-Profit Industry Conference, Eddie Adkins of Grant Thornton and Cheryl Press of Tax Exempt and Government Entities (TEGE) at the Internal Revenue Service (IRS) discussed how employee benefits and compensation are affected by healthcare reform, particularly when it comes to full-time and part-time employees. They reminded listeners that the IRS has rules defining exactly who is and who is not a full-time employee, and those rules are complex.

What can nonprofits do to prepare for these regulations? Adkins and Press said that action should be take now, not later. Specifically, they recommended taking the following steps:

  • Take time to thoroughly understand the details in the regulations. With complexity comes the chance of misunderstanding or misinterpreting. A few details could make a difference. 
  • Convene a meeting of all stakeholders, including individuals responsible for health plans inside and outside the organization. This includes the employee benefits director, the insurance broker and legal counsel.
  • Discuss the details of the rules and how they apply to the organization, and identify changes that might be necessary to avoid mandated excise taxes. 
  • Follow through with proper implementation.

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