IRS Imposes Substantial Penalties on Businesses that Send their Employees to ACA Exchanges

Businesses that attempt to gain healthcare coverage for their employees via ACA exchanges are risking severe penalties, up to $36,500 per year per employee according to a recent IRS ruling. Some employers had hoped to reduce their health care costs by allowing their employees to purchase individual coverage on the ACA exchanges and then reimbursing the employees for some or all of the cost of coverage. Other employers had similar long-standing arrangements that pre-dated the ACA. In either case, the arrangement would not satisfy the ACA requirement that large employers must provide health care coverage for their employees or pay a penalty.

The  link below will take you to a more in-depth discussion of the issue.

http://www.nytimes.com/2014/05/26/us/irs-bars-employers-from-dumping-workers-into-health-exchanges.html