Health Insurance Reimbursement Penalty Eliminated
Small Business Health Insurance Reimbursement Penalty Eliminated
Congress recently acted to remove one of the most unreasonable penalties small business owners could possibly face. In the last few years, along with the continued implementation of the Affordable Care Act, the IRS had begun enforcing a penalty against employers who reimbursed their employees for the cost of individual health insurance plans. The assessed penalty could have been up to $100 per day per employee, which would be a drastic punishment for an employer wishing to help an employee with health care coverage but unable to afford the cost of a group plan sponsorship. The recently passed 21st Century Cures Act eliminates that penalty, which will benefit both small business owners and their employees.