Monday, August 3, 2015
Own A Small Business?.. Check This Out...“No Kidding: This Week IRS starts Punishing Businesses for Helping Workers Buy Insurance.”
Small businesses that reimburse employees for the cost of premiums for individual health insurance policies or pay their health costs directly will be fined up to $36,500 a year per employee under a new Internal Revenue Service regulation that takes effect July 1, 2015.
According to the notice, an employer arrangement that reimburses or pays for employee individual health premiums is considered to be a group health plan that is subject to the $100 per-employee per-day penalty. The penalty applies whether the reimbursement is considered a before-tax or after-tax contribution.
“It’s the biggest penalty no one is talking about,” said Kevin Kuhlman, policy director for the National Association of Independent Business. “The penalty for compensating employees for healthcare-related expenses is enough to destroy most small businesses.” You can read more in this NFIB post, “No Kidding: This Week IRS starts Punishing Businesses for Helping Workers Buy Insurance.”