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Small Businesses Threatened With $36,500 IRS Fines For Helping Employees With Health Costs
Forbes ^ | 6/30/15 | Grace-Marie Turner

Posted on 06/30/2015 12:37:57 PM PDT by Nachum

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.

“It’s the biggest penalty no one is talking about,” said Kevin Kuhlman, policy director for the National Association of Independent Business. “The penalty for compensating employees for healthcare-related expenses is enough to destroy most small businesses.” You can read more in this NFIB post, “No Kidding: This Week IRS starts Punishing Businesses for Helping Workers Buy Insurance.”

The new IRS penalty is more than 18 times greater than the $2,000 employer-mandate penalty under ObamaCare for not providing qualifying health insurance for employees. And employers with fewer than 50 workers are not exempt, as they are from the employer-mandate penalty.

The rule appears nowhere in the Affordable Care Act but was developed by the Obama administration’s regulation writers at the IRS. The rule punishes small businesses for providing the only health insurance support many can afford – a contribution to help employees pay premiums for their individual or family health insurance policies or to help finance direct payment for medical services.

(Excerpt) Read more at forbes.com ...


TOPICS: Crime/Corruption; Culture/Society; Government; News/Current Events
KEYWORDS: irs; obamacare
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Obamacare: It's here to flay.
1 posted on 06/30/2015 12:37:57 PM PDT by Nachum
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To: Jet Jaguar; NorwegianViking; ExTexasRedhead; HollyB; FromLori; EricTheRed_VocalMinority; ...

The list, Ping

Let me know if you would like to be on or off the ping list

http://www.nachumlist.com/


2 posted on 06/30/2015 12:38:23 PM PDT by Nachum (Obamacare: It's. The. Flaw.)
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To: Nachum

Keep voting democrat!


3 posted on 06/30/2015 12:39:18 PM PDT by 2banana (My common ground with terrorists - they want to die for islam and we want to kill them)
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To: Nachum

we have to pass it to know what’s in it.


4 posted on 06/30/2015 12:39:24 PM PDT by ealgeone
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To: Nachum

You mean they wrote it into the law and deliberately and intentionally, with the willing cooperation of the media, didn’t let the public know about it.


5 posted on 06/30/2015 12:40:40 PM PDT by I want the USA back (Media: completely irresponsible. Complicit in the destruction of this country)
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To: Nachum

However, if a company wanted to provide a couple cartons of smokes, several bottles of whiskey and a case of beer to each employee....that’s acceptable.


6 posted on 06/30/2015 12:40:54 PM PDT by pepsionice
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To: Nachum

If even one child benefits even indirectly from this, it will have been worth it. </s>


7 posted on 06/30/2015 12:41:52 PM PDT by oblomov
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To: Nachum

Because what fun is there in vilifying employers if you can’t also fine them for being too generous?


8 posted on 06/30/2015 12:42:02 PM PDT by Buckeye McFrog
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To: I want the USA back
Not exactly.

"The rule appears nowhere in the Affordable Care Act but was developed by the Obama administration’s regulation writers at the IRS."

9 posted on 06/30/2015 12:43:06 PM PDT by FoxInSocks ("Hope is not a course of action." -- M. O'Neal, USMC)
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To: Nachum

SOBs


10 posted on 06/30/2015 12:43:57 PM PDT by afraidfortherepublic
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To: FoxInSocks

Double SOBs


11 posted on 06/30/2015 12:44:43 PM PDT by afraidfortherepublic
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To: pepsionice
However, if a company wanted to provide a couple cartons of smokes, several bottles of whiskey and a case of beer to each employee....that’s acceptable.

At this point, I'll effin' take it.

12 posted on 06/30/2015 12:46:32 PM PDT by Lazamataz (The new GOP slogan: "Vote for us!!! We are exactly the same as the Democrats !!!")
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To: Nachum

Just sent this to our health insurance coordinator person. This could be a problem.


13 posted on 06/30/2015 12:46:50 PM PDT by NEMDF
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To: 2banana

The company will fire the people and or go out of business.
Remember that healthcare is free.... but only to congress and other approve insiders.


14 posted on 06/30/2015 12:47:50 PM PDT by minnesota_bound
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To: NEMDF

I was thinking about my neighbors - that is what their employer does. They couldn’t manage the new system, so they give their employees so much a year to go out and get their own...

no more.

how can this be legal?


15 posted on 06/30/2015 12:48:38 PM PDT by ican'tbelieveit
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To: minnesota_bound

Employers can exclude employees who have been with them less than 3 years... so none of us will have jobs for longer than 3 years at a time.


16 posted on 06/30/2015 12:49:15 PM PDT by ican'tbelieveit
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To: Nachum

this regulation hit me. now i pay for it and its cut my take home by over $1000 a month.


17 posted on 06/30/2015 12:49:45 PM PDT by wiggen (#JeSuisCharlie)
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To: ican'tbelieveit

It’s not, but tell that to John Roberts.


18 posted on 06/30/2015 12:51:49 PM PDT by darkangel82
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To: NEMDF

I think that a collection of affected businesses should sue the crap out of Jonathan Gruber.


19 posted on 06/30/2015 12:52:13 PM PDT by Nachum (Obamacare: It's. The. Flaw.)
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To: Nachum

That just proves this law is meant to be a wealth redistribution scheme from the middle class to the ultra wealthy.


20 posted on 06/30/2015 12:55:40 PM PDT by JSDude1
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