Artists' spaces


	*A Guide for Artists Run Spaces and Businesses (this page was updated 12/8/08) indicates updates** The Massachusetts Health Care Reform Law has created new responsibilities for non profits organizations, for profit arts organizations, and arts related businesses. If you are an all volunteer organization and do not pay anyone for their services (i.e. you don't have a paid staff, contract staff, or paid seasonal temporary staff) chances are your organization is not going to have that many new responsibilities under this new law. It has yet to be determined if you will have to file new state paper work stating you do not have any employees. There is, however, some very basic information every employer should know about. Most individuals, under the health care reform law's the individual mandate , will have to prove on their State income taxes* that they have health insurance coverage to avoid the financial penalties of the new law. You should familiarize yourself with the Independent Contractor 2004 law change, and what the new requirements are for those employers with part time employees, seasonal employees and/or temporary employees. As an employer you need to know about the state's Minimum Creditable Coverage Requirements* for health insurance. If you have employees, you need to know how to count your number of full-time-equivalent employees to find out what, if anything, you are required to do as an employer under the health care reform law. If you have 11 or more full-time-equivalent employees you will need to abide by several key requirements and even if you don't have 11 full time equivalent employees you will still have to file/collect some state forms.* For more information on employer's requirements, see the State's general information page. ----------------------------------------------------------------------------------------------- To find out how to count your full-time-equivalent employees, see the Connector's section "How do I know if I have more 11 or more full-time-equivalent Employees?" We are creating a "How to count your full-time-equivalent workers" information & FAQ page for you to reference. -------------------------------------------------------------------------------------- If you don't have 11 or more full-time equivalent employees- you have to do the following:* "Some reporting employers were not required or able to file Employer HIRD information via DUA's FSC/HIRD combined electronic filing in 2008. These employers, though exempt from filing FSC (Fair Share Contribution) information, are required to complete and submit the below Employer HIRD form to DHCFP. For more information, please download and read the following form and companion instructions:" quoted from the the State's general information page * Employer HIRD 2008 for FSC-exempt Employers (PDF) * Instructions: Employer HIRD Form 2008 for FSC-exempt Employers (PDF) ------------------------------------------------------------------------------------------- If you do have 11 or more full-time-equivalent employees you have many new requirements: 1) You must offer a Section 125 cafeteria plan that meets Health Connector regulations. Section 125 Plans let employees save money through pre-tax payments for health coverage. If you don't offer a Section 125 cafeteria plan, you will pay the Free Rider Surcharge if your employees or their dependents get medical care that is paid by the state's Free Care Pool- now called the Health Safety Net -for the uninsured. From the Connector's website: "The amount of the Free Rider Surcharge will vary from employer to employer. It will be based on the number of employees, the amount of "free" or "safety net" care used, total state-funded costs, and the percentage of employees enrolled in the employer¹s health plan. Health care can be expensive. Offer a Section 125 Plan. If you don't, you may face large, unplanned charges when your employers or their dependents use a large amount of state free care. ... The Free Rider Surcharge applies to employers who: 1. Have 11 or more full-time-equivalent employees. 2. Do not offer a qualified Section 125 Plan to their employees. 3. Have employees who use a total of $50,000 of state-funded "Free Care" for themselves or their dependents in a 12-month period. How do you know if you have 11 or more full-time-equivalent employees for this rule? ..... The Free Rider Surcharge does not apply to employers when: a) Certain collective bargaining agreements are in place. b) Employees participate in the Massachusetts Insurance Partnership." 2) You must make a "fair and reasonable" contribution to your employees' health insurance or pay a Fair Share Contribution or fine of up to $295 per full-time-equivalent employee** per year. From the Connector's website: "As of July 1, 2007...Employers with 11 or more full-time-equivalent employees will pay an annual Fair Share Contribution of up to $295 per employee if they do not make a "fair and reasonable" contribution to an employee health plan. The funds will help pay for health plans for people who do not have the option of employer-sponsored health insurance.... A "fair and reasonable" contribution by an employer is: (i) 25% of an employer's full-time employees* are participating in the employer's group health plan. OR (ii) an employer's contribution of at least 33% toward a health plan premium for all full-time employees* who are employed more than 90 days. (Note there is no requirement to offer a family plan or to contribute to a family plan offered)* An employer who meets either (i) OR (ii) will not be subject to the Fair Share Contribution of up to $295 per full-time-equivalent employee 3) You must complete an Employer Health Insurance Responsibility Disclosure (HIRD) Form/Report which must be filed on-line, to report if you offer a Section 125 Plan that complies with Health Connector regulations. 4) You must collect an HIRD Employee Form* from employees who decline your employer sponsored health insurance and/or your employer sponsored Section 125 Plan. The Employee HIRD form is also available in Spanish* and Portuguese. For general information on the HIRD forms see the State's general information page. You will need to keep these forms on file for at least three years.** A full-time employee is: Someone who works 35 hours or more per week at a Massachusetts location (even if they live in another state). A full-time employee is not: 1) Independent contractors 2) Seasonal employees. 3) Temporary employees are not considered full-time employees. 4) Workers from temp agencies (they are the temp agency¹s employees)." If you now need to offer health insurance to your employees because of this new law and need help navigating how to do so, we have some suggestions: 1) First contact the Insurance Partnership (see below), they can direct you to a broker and/or association or membership organization. 2) You can also purchase insurance from the Connector and/or set up a Section 125 Plan through the Connector: www.mahealthconnector.org 3) A third option is to join your local chamber of commerce, the Massachusetts Business Association, the Small Business Association, or another trade group as most offer ways to purchase health insurance plans and Section 125 Plans (note the expense to set up a Section 125 Plan should be Free or at a very low cost) -------------------------------------------------------------------------------------- If you own a small business and have 50 full time employees or less* (note there is no limit on how many part time employees you can have), are a sole proprietor, or are self employed, you may be eligible for the Insurance Partnership Program which is a program that helps small businesses and the self-employed pay for health insurance. Your small business may also be eligible to purchase insurance through the Connector via Commonwealth Choice Plans. We are awaiting clarification if the self-employed and if businesses and their employees will be able to purchase Commonwealth Choice Plans through the Insurance Partnership. Please note if you are self-employed, we strongly suggest you first see if you are eligible for Commonwealth Care- the State's Subsidized Health Insurance plan-BEFORE you enroll into to the Insurance Partnership- see our Guide for Artists* -------------------------------------------------------------------------------------- The Connector has posted a FAQ's for businesses on the Health Care Reform Law. On their site they list what the new Employer Obligations are under the new law. They have a basic information section on the Health Care Reform Law that is worth looking at. They have an employer handbook on their site. On their website is specific information for businesses on how to create Section 125 plans for full-time employees, and for part-time and contract employees. The Connector has also posted a Section 125 handbook for employers. If you now need to offer health insurance to your employees because of this new law and need help navigating how to do so- we have some suggestions. First contact the Insurance Partnership www.insurancepartnership.org, they can direct you to a broker and/or association or membership organization. You can also purchase insurance from the Connector and/or set up a Section 125 Plan through the Connector: www.mahealthconnector.org A third option is to join your local chamber of commerce, the Massachusetts Business Association, the Small Business Association or another trade group to purchase health insurance. The Connector has set up a public information unit. The contact information for the unit: 617-933-3140 email: connector@state.ma.us As soon as we have a contact person's name and direct phone number we will post it. Healthcare for Artists has also launched a 125 Cafeteria Plan Watch: If you are a business owner and have been contacted by someone who tried to charge you a large amount of money to set up a 125 Cafeteria plan ($500 or more as the cost can be as little as FREE to set it up), please contact us by email. We are keeping track to make sure no one is being unfairly taken advantage by predatory sales people. The AF is in contact with the Attorney General's Office on this matter. All correspondence is kept confidential. Please email us: feedback@healthcareforartists.org -------------------------------------------------------------------------------------- Also we need your help: ALL MASSACHUSETTS ARTISTS WORKING IN ALL DISCIPLINES NEED TO STAND UP AND BE COUNTED! The Artists Foundation has collaborated to create on-line tool, Stand Up and Be Counted, to better determine how many artists of all disciplines are living and working in Massachusetts. Your answers will also help us and others to better advocate for our population. Go to the OnLine Questionnaire. Help us make the invisible- VISIBLE! Help us spread the word on this on-line tool!