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

[rcduggan]

https://www.cms.gov/CCIIO/Resources/Fact-Sheets-and-FAQs/Downloads/FAQs-Part-XXII-FINAL.pdf

 

[TN_agent]

**drops mic.


you rock, rcduggan

 

[AllenChicago]

https://www.cms.gov/CCIIO/Resources/Fact-Sheets-and-FAQs/Downloads/FAQs-Part-XXII-FINAL.pdf

Is Q&A #3 in that government document referring to ZANE Benefits, Inc., and similar companies?

 

[tonyisme]

The minimum fine the accountant tells me for the accountant penalty is $500 and up for giving incorrect information.

 

[txagt39]

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?

Employers who reimburse employees for individual non-group health plans face a $100 a day or $36,500 per year, per employee excise tax. This rule applies to all employers, but the fine itself is only levied on those who have to comply with ObamaCare's mandate (firms with 50 or more full-time equivalent employees). The enforcement of the fee was put off in most cases, but it was kicked into full gear starting July 1, 2015.

 

[mschlange]

Have you heard of any business being fined or audited so far?
If they are under 50 ft ee there is no fine? Is that stated in the regs?

 

[LGilmore]

"Have you heard of any business being fined or audited so far?"

The couple of audits I have experienced have been 3 years after the fact. It is early yet to figure out if they are enforcing it. A couple years down the road and we'll see.

The thing is when they do audit and find a problem, the fine is based on day 1, not the day they find the problem.

This is why when we looked at what Zane advises my CPA buddie simply said "no way" would he put his clients or his practice in that position that Zane was brokering....

 

[agentinsure]

I called our state insurance commissioners' office to see what they had to say; "our position is any agent who engages in facilitating employee premium reimbursement plans as promoted by some third party programs will be subject to financial sanctions in addition to agent license revocation".

Just something to think about,you might want to phone your OIC and see what they say. IRS penalties might be the least of your worries.