An obscure IRS rule took effect this week affecting small business owners who thought helping their employees by increasing wages or paying for their healthcare costs would be a great way to not provide health coverage through work.
Employers who have done this will find themselves paying $100 penalty A DAY PER EMPLOYEE.
“Under the rule, which the NFIB noted appears nowhere in the Affordable Care Act, employers who do not offer a group health plan, but give their workers additional pay to compensate for the purchase of health insurance or direct medical expenses, can be fined $100 per day, per employee. Over the course of a year that can add up to $36,500 per employee, up to $500,000 in total. In contrast, the penalty on businesses for failing to comply with the employer mandate is only $2,000 per year.”
New Tax Penalty Starts Today on Small Business Health Insurance
Washington, D.C. (July 1, 2015)
By Michael Cohn
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