"The IRS is pointing out that employers face Affordable Care Act non-deductible penalties of $36,500 per employee, per year if your current arrangements with your employees are not compliant." It is indeed a brave, new world. Employers cannot afford to assume current employee health benefits meet ACA requirements. Just to emphasize that fact, the IRS is pointing out that employers face Affordable Care Act non-deductible penalties of $36,500 per employee, per year if your current arrangements with your employees are not compliant. Especially being targeted are “non-integrated employer payment plans,” including reimbursement plans such as HRAs (health reimbursement arrangements excluding retiree-only and excepted benefits HRAs). HRAs were supposed to be either eliminated by January 1, 2014, or amended to be integrated with group health coverage. | "Employers need to know that a non-integrated employer payment plan is just one of many potential triggers of these potentially crippling penalties." The IRS first announced the $100 per day excise tax, which totals $36,500 per employee per year, just prior to ACA open enrollment last year in September. Employers need to know that a non-integrated employer payment plan is just one of many potential triggers of these potentially crippling penalties. See a Q&A on the issue here. See the original notice in its entirety here. If you still have questions, please don’t hesitate to tap into the expertise of a health care reform navigator to make sure your company can steer clear. Source: Caresani, Ann. Employee Benefit News “The $36,500 per Employee ACA Penalty.” May 22, 2014 http://ebn.benefitnews.com/news/ebn_co_benefits_management/the-36500-per-employee-aca-penalty-2741752-1.html 2/4 IRS. “Employer Health Care Arrangements.” May 26, 2014 http://www.irs.gov/uac/Newsroom/Employer-Health-Care-Arrangements |
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