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What The Heck Are we Supposed To do About PPACA Now? Karen Haase & Bobby Truhe (402) 434-3000 H & S School Law khaase@hslegalfirm.com @KarenHaase btruhe@hslegalfirm.com @btruhe


Employer Mandate  Large Employers must either • Make affordable, qualifying coverage available to all full time employees • Pay a “shared responsibility tax” to supplement the cost of those employees obtaining insurance on the exchange


Employer Mandate Delayed  July 3, Administration announced no enforcement of employer mandate until 1/1/2015  Law hasn’t changed, enforcement has (and that makes all the difference)  Individual mandate still being enforced


Transition Relief Uncertainty


Transition Relief Uncertainty  What is transition relief? (6 versus 12 months)  What is the uncertainty?  Planning ahead • Without transition relief, first date schools could be taxed is 1/1/15 • With transition relief, first date schools could be taxed is 9/1/15


Our Advice: Slow Down


Schools’ Potential Taxes  Option 1: Offer NO Insurance • If 1 uncovered employee obtains insurance on the exchange and receives a tax credit, then • Employer pays $2,000 per total number of employees minus 30


Schools’ Potential Taxes  Option 2: Offer “unaffordable” Insurance • If 1 uncovered employee obtains insurance on the exchange and receives a tax credit, then • Employer pays $3,000 per employee who meets all three criteria (unless that is more than the “NO insurance” tax) • A worthwhile option to consider


No Shame in Paying Taxes


What DO schools need to do?  October 1 Notice  Track Employee Hours  Sit Tight


October 1 Employee Notice  Must provide all employees a notice of the insurance exchanges  Original deadline was March 1, 2013  Must be in writing “in a manner calculated to be understood by the average employee.”  It may be provided by first-class mail.  May be provided electronically if certain requirements met


Tracking Employee Hours  Required by the FLSA  Required by ACA


FLSA Records (a) Items required. Every employer shall maintain and preserve payroll or other records containing the following information and data with respect to each [non-exempt] employee:  (1) Name in full  (2) Home address, including zip code  (3) Date of birth, if under 19  (4) Sex and occupation in which employed (sex may be indicated by use of the prefixes Mr., Mrs., Miss., or Ms.)  (5) Time of day and day of week on which the employee's workweek begins  (6)(i) Regular hourly rate of pay for any workweek in which overtime compensation is due under section 7(a) of the Act…


FLSA Records  (7) Hours worked each workday and total hours worked each workweek (for purposes of this section, a “workday” is any fixed period of 24 consecutive hours and a “workweek” is any fixed and regularly recurring period of 7 consecutive workdays)  (8) Total daily or weekly straight-time earnings or wages due  (9) Total premium pay for overtime hours  (10) Total additions to or deductions from wages paid each pay period  (11) Total wages paid each pay period  (12) Date of payment and the pay period covered by payment


ACA “Hours of Service� Hour of service In general. The term hour of service means each hour for which an employee is paid, or entitled to payment, for the performance of duties for the employer; and each hour for which an employee is paid, or entitled to payment by the employer for a period of time during which no duties are performed due to vacation, holiday, illness, incapacity (including disability), layoff, jury duty, military duty or leave of absence.


ACA “Hours of Service� Hour of service In general. The term hour of service means each hour for which an employee is paid, or entitled to payment, for the performance of duties for the employer; and each hour for which an employee is paid, or entitled to payment by the employer for a period of time during which no duties are performed due to vacation, holiday, illness, incapacity (including disability), layoff, jury duty, military duty or leave of absence.


Tracking “Hours of Service”  One Option for Hourly Staff

•TRACK HOURS  Three Options for Non-hourly Staff • Track hours • Daily equivalent (8) if one hour of service • Weekly equivalent (40) if one hour of service


Timeline  Standard Measurement Period (SMP) • 7/1/13: begin tracking hours of service • 13-14 year: be mindful of hours • Delay of Employer Mandate

 Administrative Period • May not exceed 90 days in total for new employees


What The Heck Are we Supposed To do About PPACA Now? Karen Haase & Bobby Truhe (402) 434-3000 H & S School Law khaase@hslegalfirm.com @KarenHaase btruhe@hslegalfirm.com @btruhe


Obamacare labor relations