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.
Its 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 administrations 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 ...
The list, Ping
Let me know if you would like to be on or off the ping list
Keep voting democrat!
we have to pass it to know what’s in it.
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.
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.
If even one child benefits even indirectly from this, it will have been worth it. </s>
Because what fun is there in vilifying employers if you can’t also fine them for being too generous?
"The rule appears nowhere in the Affordable Care Act but was developed by the Obama administrations regulation writers at the IRS."
SOBs
Double SOBs
At this point, I'll effin' take it.
Just sent this to our health insurance coordinator person. This could be a problem.
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.
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?
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.
this regulation hit me. now i pay for it and its cut my take home by over $1000 a month.
It’s not, but tell that to John Roberts.
I think that a collection of affected businesses should sue the crap out of Jonathan Gruber.
That just proves this law is meant to be a wealth redistribution scheme from the middle class to the ultra wealthy.
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