Employers (including governmental employers) need more than just the Healthcare Plan

As businesses begin the new year the one thing on everyone’s mind is healthcare and the costs related to it.  It is of utmost importance not to forget the documents that go along with your healthcare plan such as your plan documents.  Failure to adhere to these rules open employers up to a $100 fine per day per employee.  Please note that this fine stems from the Department of Labor and not the IRS.  If an employee asks to see the plan document and one is not in place or if the employer is audited and the plan document is not in place hefty fines will follow. 

Of equal importance is understanding that governmental entities such as counties, cities, municipalities, etc., are not exempt from these laws.  Further, governmental entities and any business who offers a healthcare plan should contact our offices to ensure they are compliant with these laws.  The question is not whether or not you can afford to comply, but rather can you afford not to comply.  The $100 penalty spoken of is a separate penalty from the Affordable Care Act (“ACA”) and a penalty under the Employee Retirement Income Security Act (“ERISA”). 

This is not intended to be legal advice and does not form an attorney-client relationship with any reader.