Small Business Health Care Insurance Reimbursements

Many small businesses  reimburse employees for some or all of their individual health insurance premiums as opposed to establishing their own health insurance plan. Beginning 7/1/2015 this is no longer an option due to new IRS regulations. The penalty is $100 a day in excise tax per employee up to $500,000 per company for any size company. S Corporations are exempt through the end of 2015. Bills have been introduced in the House and Senate to remedy the situation but nothing has happened yet.