by The TaxResearchPro Team | Nov 18, 2015 | Business Tax
One of my C Corporation clients is purchasing group health insurance. Could an HRA be integrated with the plan to reimburse the employees for a high deductible? I presume yes as long as the minimum value required method is used. Also, I presume it’s tax-free to the employee and deductible to the employer? I couldn’t find anything in 2013-54 that states otherwise. Can An Integrated HRA Plan Reimburse Deductibles?
by The TaxResearchPro Team | Nov 10, 2015 | Business Tax
This subject relates to the self-employed health insurance deduction as per IRC 162(l). What arrangement needs to be sought to entitle both taxpayers health insurance deducted on Form 1040, page 1?
by The TaxResearchPro Team | Aug 11, 2015 | Business Tax
My client is based has a New York C Corporation. The company is currently paying the health insurance coverage for only one employee directly to the insurance provider. There are four other employees that work for the company. Is there an ACA violation if the c corp paid health insurance for just that one employee?
by The TaxResearchPro Team | Mar 21, 2015 | Business TaxIf you haven’t already heard, the IRS released an update on the tax rules for health insurance reimbursement plans as it relates to the Affordable Care Act (ACA) and S Corporations. This update addresses small businesses that do not offer healthcare coverage, but do reimburse employees for insurance purchased on the healthcare exchanges. The IRS is now waiving noncompliance penalties for the 2014 tax year and the first half of 2015. How does this impact your business and what else has changed? Is there still a noncompliance penalty? No, the IRS has provided relief for businesses to transition to the new ACA rules. Specifically, any employer with less than 50 full-time employees will not be subject to the infamous $36,500 Section 4980D penalty per employee. The relief applies to employers that are conducting an employee reimbursement plan for 2014 and through June 30th, 2015. However, penalties will still be applied beginning on July 1, 2015. What about S Corp owners? As you may recall, notice 2013-54 indicated that if an S Corporation is reimbursing or paying premiums on non-employer sponsored health insurance for more than one S corporation employee, then the reimbursement arrangement may be considered a “group plan” subject to ACA because it covers more than one employee. In this instance, the S Corporation would be required to include FICA on the reimbursed amount because the ACA provisions have been violated. However, per this latest Notice 2015-17, the IRS will not assert the Section 4980D penalty on an S corporation that reimburses the insurance premiums of a more than 2% shareholder. Furthermore, the notice indicates that the IRS...