Health Insurance Exchange – Reimbursing Employee Premiums
Businesses choosing not to provide a health insurance plan directly to employees must provide reimbursement to employees for the premiums they pay for a qualified health insurance plan that they must acquire through either the health insurance exchange or independently. The IRS has posted FAQs that address the consequences of an employer reimbursing its employees for these premiums. Proposed by some as an inexpensive way to shift the expense of providing employee health care away from the employer (“dumping strategy”), requiring only that the employer provide its employ...
Are You A Small Business or Tax-Exempt Organization Providing Healthcare Insurance to Your Employees? Take Advantage of the Health Care Tax Credit
Businesses with fewer than 25 full-time equivalent employees and with average wages of $50,000/year or less (to be adjusted for inflation beginning in 2014) may qualify for employer health care tax credit. Businesses must pay a minimum of 50% of the full-time employees’ premium costs and are not required to provide health insurance coverage to part-time employees or dependents.