Reimbursement of Employee Health Insurance Premiums (Including S Corporation Shareholders)

A little known and very under-publicized change to the insurance tax laws that took place on January 1, 2014, has exposed employers to a potentially heavy excise tax if they reimburse employees for health insurance premiums vs. enrolling in group plans.  This includes employee shareholders.

Employer reimbursements or direct payment of health insurance premiums for individual policies or coverage under a spouse’s policy may be deemed a group health plan subject to the Affordable Care Act’s (ACA) market reforms if they are made for more than 1 employee.  The deemed group health plan would not comply with the ACA’s benefit mandates for group health coverage and would be subject to excise taxes of $100 per day, per employee with no limit.

While the new […]

By |August 18th, 2015|Categories: Business Operations, Business Tax|Tags: , , , , , , , , , , , , |Comments Off on Reimbursement of Employee Health Insurance Premiums (Including S Corporation Shareholders)

2014 “Tax Extender” Legislation

In late December Congress passed the Tax Increase Prevention Act of 2014, which served to extend more than 50 individual, business and energy tax incentives retroactively to January 1, 2014.  The Act includes all of the popular incentives for individuals, such as the state and local sales tax deduction and higher education tuition deduction, as well as many business incentives, including the research tax credit, bonus depreciation and enhanced Code Sec. 179 expensing.  A handful of extenders were not renewed, mostly targeted to energy efficiency.

For a complete summary of the Act, you can visit the Resources section of our website (click on the “Tax Increase Prevention Act of 2014” link in the yellow box on the right-hand side […]

By |February 4th, 2015|Categories: Announcements, Business Tax, Individual Tax|Tags: , , , , , , , , , |Comments Off on 2014 “Tax Extender” Legislation
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