On May 13, 2014, the Internal Revenue Service (IRS) issued FAQs addressing the consequences for employers that provide employer payment plans. The IRS clarified that these arrangements do not comply with the Affordable Care Act’s (ACA) market reforms and are subject to an excise tax.

Employer payment plans are arrangements in which employers reimburse employees on a pre-tax basis for individual health insurance premiums, whether inside or outside of an Exchange. Some employers have considered doing this to help employees pay for individual health insurance policies instead of offering an employer sponsored health plan…(read more)

 

In this issue:

• Penalties for Pre-tax Contributions to Employee Individual Health Premiums
• New Employer SHOP Tools Introduced