What is a Tax Return Extension?
For most American taxpayers, April 15 is Tax Day—the due date for filing an individual tax return. However, over 10 million taxpayers choose to file...
Do you reimburse employees for individual health policies? If you do, you may be in violation of a recently issued IRS guidance notice.
Until recently, it’s been unclear whether such a practice is in compliance with the Affordable Care Act (also known as Obamacare). The IRS and Department of Labor (DOL) interprets such a practice as an employer creating its own group health plan. Being a group health plan, it must not have an annual limitation on benefits. However, the amount paid for insurance is deemed to be the annual limitation and, thus, fails the requirements.
Although such an arrangement is still income-tax free, it is subject to a new penalty under §4980D. This penalty imposes an amount of $100 per day, per participant!
As you can see, the rules pertaining to insurance reimbursements are quite challenging. If you pay individual health care policies for any employees, please call us to discuss.
For most American taxpayers, April 15 is Tax Day—the due date for filing an individual tax return. However, over 10 million taxpayers choose to file...
Misclassifying workers as independent contractors instead of employees can put your business in hot water. Think heavy fines, back taxes,...
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Business owners are continually challenged with reducing costs and managing cash flow, even more so during difficult times....