The Internal Revenue Service (IRS) has issued new FAQs to make clear the penalties employers may get, if they decide to offer pre-tax monies to their workers so they can buy individual insurance.
The IRS calls this an employer payment plan. It's viewed as a group health plan, but it doesn't meet the Affordable Care Act (ACA) rules.
For example, employer payment plans do not meet parts of the ACA that give workers certain preventive care benefits at no cost share. Because employer payment plans do not meet all ACA rules, employers may be taxed $100 per day for each employee this applies to. (That adds up to $36,500 per year, per worker).
For more details on this update, or questions regarding how this affects your business, contact Dave Godel.
Information Source: Anthem Blue Cross Blue Shield Employer News
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