Zane Benefits ??????

Oct 27, 2015

  1. SamIam
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    SamIam, Oct 27, 2015
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  2. Yagents
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    Salary only..............you can't make everyone buy an HSA, or only contribute to some people's HSA's to pass discrimination testing (I may be wrong on this)
     
    Yagents, Oct 27, 2015
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  3. SamIam
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    No your correct but my point is how is zane saying companies can reimburse employees for buying individual health insurance?
     
    SamIam, Oct 27, 2015
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  4. LGilmore
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    Zane has said a lot of things, the IRS has the final say and the two don't seem to see things the same way. Follow at your own risk.
     
    LGilmore, Oct 27, 2015
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  5. Ann H
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    You said that very well, LGilmore.

    I just read the article. Zane is now telling the business owners to have their employees go directly to the health insurance marketplace. I guess Zane is throwing agents under the bus now. Probably be cause too many agents didn't agree with Zane's theories about this being non-taxable.
     
    Ann H, Oct 27, 2015
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  6. RayNY
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    Correct me if I'm wrong, but wasn't Zane the one advising businesses to put employees on the individual exchange and thought that a business paying Zane, who then paid the indy premium, got around the rules for a business "directly" paying individual premium?

    Then got in some hot water because it's clearly not allowed, so they do the same thing through an HRA now?

    Articles about it often say something along the lines of : "Zane said they would [qualify for a subsidy under this arrangement]. All of the lawyers interviewed said they would not." or "It is abundantly clear that the I.R.S. thinks that you cannot use one of these arrangements to use tax-free dollars to pay for individual health insurance,”

    Officials have commented this isn't compliant either. It's too darn risky for me to even consider.
     
    RayNY, Oct 28, 2015
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  7. LGilmore
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    LGilmore Guru

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    I've had several chats over beers with my friend who is a CPA about Zane and what they throw out there.

    His point is really the deal killer. The IRS when they make a ruling, it doesn't usually start tomorrow, but goes back to the day you started doing it. Potentially you're setting up clients for fines dating back several years. He's seen it before with other topics and wouldn't put this risk on his clients no matter what Zane says. As I said earlier the IRS is the final say. If they don't like it, you should avoid it.
     
    LGilmore, Oct 28, 2015
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  8. Ann H
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    True. Also, some people think this will be decided in a court of law. But the IRS doesn't file a lawsuit. They demand the back tax and penalties. If you want to get a lawyer and sue the IRS after that, have at it!

    Zane said they will pay any employer penalties.

    Okay, but how about the back tax? And legal costs?

    And how about employees' back tax and penalties? You know, the employees would be liable for back Federal, State and FICA tax, plus penalties and interest. The employer would only be liable for back FICA tax, plus penalties and interest, plus the penalty for having a non-compliant plan. This would hurt not only the business, but really damage employees too.
     
    Ann H, Oct 28, 2015
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  9. RayNY
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    Ann, what you described is literally one of my worst fears in this business.

    It's way too risky to even consider. I couldn't live with myself if I put all my clients out of business with fines/penalties/interest that could have been avoided.

    Lets be honest, companies willing to do this are the same ones who could never afford the penalty.
     
    RayNY, Oct 28, 2015
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  10. hamben
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    The problem is it is legal according to section 105 plans however the hhs and the it's have ruled them as company sponsored plans subject to the Heath care reform laws making the employer subject to the $100 a day fine per employee. Zane is right it's legal. Agents are right business will get fined . Hope that helps
     
    hamben, Oct 28, 2015
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