If your company has fewer than 50 full-time employees and you have a healthcare arrangement, that reimburses them for their medical insurance premiums, the Internal Revenue Service has provided some significant relief from a large excise tax that applies to health plans that don’t comply with Affordable Care Act provisions. However, it’s important to be aware that the relief expired on June 30, 2015. If you don’t comply—and continue to use a health reimbursement arrangement, either pre-tax or after-tax, –you could be subject to a penalty of $100 per day, per employee.
If you believe you could be subject to the excise tax, contact us today for advice that can help you avoid unnecessary penalties. Call our office, as well, if your company is an S corporation and you have questions about IRS relief related to those entities’ healthcare plans.