Photo: Villanova.edu
When a new hire is made, there is often a litany of paperwork and to-dos that need to be completed, especially around tax and healthcare-related activities. With the ACA, it’s even more imperative to be compliant with documents and timing.
As such, below is a checklist of all necessary paperwork and due dates for new hires*. Each time you recruit new talent, it is recommended that this checklist be referenced to ensure your organization is in lock-step with ACA requirements:
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o Summary plan description (SPD), with general notice of COBRA rights (COBRA rights can be provided separately)
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Within 90 days of after coverage begins |
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o Summary of Benefits and Coverage (SBC), and Uniform Glossary (this can provided with the SPD) |
Within 90 day of special enrollment |
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o Notice regarding availability of health insurance exchange |
Within 14 days of hire date |
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o Notice of special enrollment rights** |
Prior to or when an employee is offered the opportunity to enroll in a group plan |
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o Women’s Health and Cancer Rights Act notices** |
Upon enrollment (annually) |
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Provided at the same time as the SPD |
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o Notice of patient protections** |
At the same time as the SPD |
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o Notice of privacy practice for protected health information |
At the time of enrollment |
Not adhering to these guidelines, especially with regard to the SPD and SBC, can potentially result in penalties come tax time, something that can have a significant impact on budgets – especially for cash-strapped nonprofits.
* This does not including standard healthcare documentation that needs to be provided to all employees during enrollment.
** Model notices for these items can be found at: http://www.dol.gov/ebsa/pdf/CAGAppC.pdf
Want to retain those new hires even if you can't offer a competitive salary?
Download our guide to offering high quality benefits at a reduced cost:
