Smaller dealers may be eligible for tax credit if they provide insurance

[U]Smaller dealers may be eligible for tax credit if they provide insurance[/U]

No penalties for U.S. employers who dont comply with Oct 1 ACA employee notice mandate[/I]

Employers cannot be fined or penalized for failing to notify employees about the Affordable Care Act health coverage exchanges by October 1, the Department of Labor has said.

Employers should still provide notification by that date to help educate employees and to show good faith.

The notice should tell employees that, depending on their income and the insurance their employer offers, they may be able to get lower cost individual insurance through the exchanges.

The notice should also say that if employees buy private, individual insurance through state exchanges, they will lose the employer contribution to their health benefits.

The ACA also offers a tax incentive for employers with fewer than 50 employees to offer insurance and pay for at least half the cost. (Because of their size, those

employers are not required to provide insurance under the act.) To be eligible, employers must provide coverage through the Small business Health Option Plan (SHOP), available through the state health care exchanges on the same schedule as individual insurance. The maximum credit, determined as a percentage of the employer’s contribution to the employee’s health benefit, will increase from 35 percent this year to 50 percent in 2014.

The credit may be taken for two years. Dealers should check with financial advisors about eligibility.

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