How does a relationship with a PEO impact a business' eligibility for tax credits, exposure to "Pay or Play" penalties, and non-discrimination requirements?
The issue of an employer’s relationship with a PEO under healthcare reform was addressed in a colloquy that occurred on the floor of the U.S. Senate. A “colloquy” is a verbal exchange that is made part of the federal register in order to clarify legislative intent. The colloquy indicated the requirements of healthcare reform will apply at the client organization level separately and not the PEO level. For instance, whether a client organization is a "large employer" subject to the employer health mandate will be determined client by client, and not at the PEO level. Whether a client organization offers "affordable" coverage or "minimum value" coverage will be determined at the client organization level - client by client. Eligibility of full-time employees for premium tax credits or subsidies will be determined client by client, and penalties will be assessed client by client. Non-discrimination rules will be applied client by client.
SouthEast Personnel Leasing has the following tools and resources available to help your company meet the Health Care Reform requirements. We're here to help!
Employer Tools and Resources:Employer Notice FAQ
Federal Notice of Exchange Samples:With Health Plans (English) (Spanish) or
Helpful Websites:DOL Required Federal Exchange Notice