As a small employer, do you have any employees who are not on your group plan, and for whom you either pay their individual health insurance premiums directly or reimburse the employee for their health insurance premiums? Under the Affordable Care Act these payments are not permitted and are subject to a $100 per day per employee excise tax beginning July 1, 2015. This excise tax is applicable to all employers regardless of the number of employees that you have. Other plans that are subject to the $100 per day per employee excise tax are Medicare premium reimbursement arrangements and TRICARE health reimbursement arrangements. Employers who have tried to accommodate employee needs with these plans will have to develop different strategies to provide health insurance their employees.
For more information on this excise tax go to http://www.irs.gov/Affordable-Care-Act/Employer-Health-Care-Arrangements or contact us at TRP CPAs.