the ACA open enrollment period is coming to a close and tax season has come and
gone, it is time for small business owners to turn their attention to the
looming June 30, 2015 deadline that came out of Notice 2015-17. Any small
business owner that does not conform to the guidelines outlined regarding
health coverage reimbursement arrangements and employer payment plans have been
given a second chance to comply with market reforms without incurring
business owner’s time for making this transition is running out, as the
guidance delayed the $100 per-day per-employee penalty for failure to comply
until June 30, 2015. A few highlights to take away from Notice 2015-17
penalties for noncompliant employer payment plans through June 30, 2015.
that arrangements with one participant are exempt from the market reforms.
or greater S-Corporation Shareholders are exempt from the market reforms for
2015. However, their regular employees are not.
of S or C Corporations who are covered under the same individual insurance
coverage count as one participant for the market reforms.
Part B and D premiums can be reimbursed under an arrangement as long as the
employer sponsors a group insurance plan for its other employees.
that after tax arrangements which are contingent on the purchase of insurance
are not permissible.
important for small business owners to conform to these reforms. If you
have any questions regarding IRS Notice 2015-17 and what it really means for
you, please call 1-888-386-9680.
BASE® - Director of Marketing & Communications