Forbes just published the attached article which highlights information about some very serious penalties that could affect businesses of all sizes. This particular rule appears nowhere in the Affordable Care Act, but was developed by the Obama administration’s regulation writers at the IRS.
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 per year, per employee! This Internal Revenue Service regulation took effect July 1st, and the penalties associated with this are 18 times greater than the $2,000 employer mandate penalty to employers for not providing qualifying health insurance for employees. This could be devastating to many businesses out there, and if you do have clients that this could affect, please share this information with them! If you have any questions regarding this topic, or about how ADP can help these businesses avoid this issue, please contact me as soon as possible and I’ll be happy to schedule.
You can read the full article here.