Private Clubs Newsletter

Employer Requirements of the Affordable Care Act

The Affordable Care Act (ACA) is scheduled to take effect on January 1, 2014. There is an employer mandate which we would like to bring to the attention of club management at this time. Notice to Employees Requirement Due by October 1, 2013
Pat Halloran phalloran@odpkf.com (914) 381-8900

On May 8, 2013, Technical Release 2013-02 was issued by the U.S. Department of Labor (DOL). It announces the availability of a Model Notice to Employees of Coverage Options. No later than October 1, 2013, the club whether or not it has 50 or more full-time employees must provide all current full-time and parttime employees with an appropriate notice concerning coverage options offered by health insurance exchanges. These exchanges will be run by either your individual state government or the federal government. Going forward, all new employees must receive such notice within 14 days of his/her start date. There are two model notices which you can find respectively at the appicable link below: For employers that offer health insurance: http://www.dol.gov/ebsa/pdf/FLSAwithplans.pdf For employers that do not offer health insurance: http://www.dol.gov/ebsa/pdf/FLSAwithoutplans.pdf

Clare Cella ccella@odpkf.com (212) 867-8000

Chris Casini ccasini@odpkf.com (201) 712-9800

The applicable notice must be completed and provided to all employees automatically and free of charge, irrespective of full-time or part-time status. It may be hand-delivered, mailed by first-class postal service, or provided electronically [if the requirements of DOLs electronic disclosure safe harbor requirements are met]. It is recommended that a receipt acknowledgment be obtained by the club from each employee. COBRA

Al Fiore afiore@odpkf.com (203) 323-2400

You will also find at the following link, a model notice which may be used by the club for employees who become qualified beneficiaries under COBRA which makes reference to the healthcare exchanges. The election notice must be

provided to qualified beneficiaries within 14 days after the plan administrator receives notice of a qualifying event. http://www.dol.gov/ebsa/cobra.html More Information Information for employers and others about the Affordable Care Act is available at: www.healthcare.gov and www.dol.gov/ebsa/healthreform As the effective date approaches, it is likely that additional information regarding the ACA will be issued; therefore, it is important that club management remain aware and proactive.
About Our Practice: Private clubs operate in a unique business environment. They are constantly challenged with providing optimum quality and service while controlling costs. Private clubs must be aware and ready to react to changes in government regulations, tax laws, operational advancements and member expectations. Our dedicated Private Club professionals include partners, managers and staff with highly specialized experience, education and training. Our team is current on developing trends in the industry which assists our clients achieve their strategic goals for success. Our long history of serving the private club industry exemplifies our commitment to serving this community. OConnor Davies, LLP is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms. IRS CIRCULAR 230 DISCLOSURE: To comply with IRS regulations, we are required to inform you that unless expressly stated otherwise, any discussion of U.S. federal tax issues in this correspondence (including any attachments) is not intended or written to be used, and cannot be used, (i) to avoid any penalties imposed by the Internal Revenue Code, or (ii) to promote, market, or recommend to another party any transaction or matter addressed herein. Our firm provides the information in this e-newsletter for general guidance only, and it does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation.