If you’re reimbursing your employees for their healthcare costs, you might want to reconsider. There are serious fines associated with doing that, and the IRS isn’t pulling any punches.
“Small businesses that reimburse employees for the cost of premiums for individual health insurance policies or pay their health costs directly will be fined up to $36,500 a year per employee under a new Internal Revenue Service regulation that takes effect July 1, 2015.
“According to the notice, an employer arrangement that reimburses or pays for employee individual health premiums is considered to be a group health plan that is subject to the $100 per-employee per-day penalty. The penalty applies whether the reimbursement is considered a before-tax or after-tax contribution.”
Read the rest of the article on Forbes.