As if it wasn’t tough enough to run a business, beginning this month, the Internal Revenue Service can levy fines amounting to $100 per worker per day or $36,500 per worker per year, with a maximum of $500,000 per firm.
This Internal Revenue Service penalty is not written into the Obamacare law. The amount is over 12 times the statutory amount in the Affordable Care Act of $3,000 per worker per year. That is what an employer is charged when one of its employees gets subsidized care on one of the health-care exchanges. It’s 18 times the $2,000 penalty for not offering adequate health insurance.
The $100 fine is applicable not only to large firms, but also those with fewer than 50 workers that are exempt from the $2,000 and $3,000 employer penalties. Firms with one worker are exempt. The penalty for S-corporations will take effect on Jan. 1, 2016. The new rule is broad, sweeping and overly punitive.
Prior to the IRS’ pronouncement, many businesses who didn’t offer health insurance provided tax-free dollars to help their employees pay for individual health policies or other medical costs. Now, they
Prior to the IRS’ pronouncement, many businesses who didn’t offer health insurance provided tax-free dollars to help their employees pay for individual health policies or other medical costs. Now, they will be penalized for aiding their workers.
Read the full report here.
Contact Steven G. Cosby, MHSA, Group Health Insurance Broker and Agent with Cosby Insurance Group, with questions or to request more information and to schedule a healthcare plan evaluation, savings analysis or group plan solution for your company.
