The IRS provided temporary transition relief for small employers (less than 50) concerning the payment of individual health insurance. Small employers are not required to pay the $100 per day penalty for non-compliance. The temporary relief applies from January 1, 2014 to June 30, 2015.
- Payment of individual health insurance by the employer is not taxable. (see the details to be sure it applies in your situation).
- Nor are reimbursements for Medicare parts B and D or Tricare if a part of a group healthcare plan
- The transition relief does not apply to a stand-alone HRA.
- Churches should read the entire notice to be certain they qualify for the relief.
- Begin by reading the explanation of the notice provided by GuideStone.
http://content.govdelivery.com/accounts/USIRS/bulletins/f21712?reqfrom=share
http://www.irs.gov/pub/irs-drop/n-15-17.pdf
Recent Guidance on Employer Payment Plans (.pdf)
– See more at: http://www.alsbom.org/blog/irs-provides-transition-relief-for-small-employers#sthash.dNnAyjyW.dpuf
