Did You Know You Can Reimburse Your Employees for Individual Health Insurance?

Discussion in 'Health Insurance and Ancillary Benefits' started by Zane Benefits, Apr 28, 2015.

  1. Zane Benefits
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    Zane Benefits Expert

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    Hello everyone,

    With new healthcare reforms and group health insurance rates that have increased quite a bit in the last 15 years or so, did you know that you have the option to reimburse your employees for individual health insurance?

    It seems too easy, and really it is. Basically, what it comes down to is this: cost and control. When you have your employees purchase individual health insurance plans from the Marketplace, you're allowing them to utilize premium tax credits, and you can reimburse all or a portion of their premiums.

    It's a way to save small business owners and employees money while still providing a means for you and your employees to have health insurance. The best way to reimburse employees is through a formal reimbursement section 105 plan. You can do it tax free. If you're curious and want to learn more, here's a great article that talks about it. Let me know if you have any questions!

    Q&A: How Can I Reimburse My Employees for Healthcare?
     
  2. sman
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    sman Guru

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    So how does an employer set up the Section 105 and what are the costs to do so? As you know, employers are no longer allowed to just pay for their employees individual health plan premiums and take it as a business deduction without adding the premium paid to the employees salary.

    So if I understand you correctly, you are saying that through a Section 105, the employer can pay the premium, deduct it as a business expense and the employee does not have to report it as income?
     
    Last edited: Apr 28, 2015
  3. Yagents
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    Yagents Guru

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    Will you guarantee payment of the HUGE $100 day per employee penalties for the employer if your 105 plan is illegal? (As the recent IRS guidance states regarding employee premium tax free reimbursement)
     
  4. tonyisme
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    tonyisme Guru

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    Danger Will Robinson...Danger
     
    Last edited: May 19, 2015
  5. sman
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    sman Guru

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    Looks like Zane is a hit it and quit it artist.
     
  6. kgmom219
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    kgmom219 Guru

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    Waaaaaaay TMI......
     
  7. tonyisme
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    better yet for the employer than 105....is that my friend just lost his job has an IT executive in health care... His job getting outsourced to India in June.
    Just another way around the ACA for the employer.
    Way to go Obummer you are succeeding
    In your agenda against Amerika....
     
  8. taterpeeler
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    taterpeeler Guru

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    hey... i had that title back in the 90's
     
  9. sman
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    sman Guru

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    I thought you were a minute man?
     
  10. OregonDave
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    OregonDave Super Genius

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    TASC is what AHCP is using these days. They seem to be compliant.
     
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