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.

1. Payment of individual health insurance by the employer is not taxable. (see the details to be sure it applies in your situation).
2. Nor are reimbursements for Medicare parts B and D or Tricare if a part of a group healthcare plan
3. The transition relief does not apply to a stand-alone HRA.
4. Churches should read the entire notice to be certain they qualify for the relief.
5. 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