Small Employers Must Conform to ACA by June 30 or Risk Substantial Penalties
Author: Robert Conner
Small employers that have offered employer payment plans are approaching the deadline to comply with provisions of the Affordable Care Act (ACA).
The IRS provided transition relief, expiring June 30, 2015, to small employers with fewer than 50 full-time employees offering employer payment plans. After that date, small employers continuing to offer such arrangements could be subject to significant penalties.
Employer payment plans are arrangements whereby the employer directly pays or reimburses employee-paid premiums for nonemployer-sponsored hospital and medical insurance. As BKD has previously reported, these arrangements may run afoul of certain ACA provisions and subject employers to a penalty of $100 per day, per employee.
Companies should evaluate whether they should take steps to bring their existing arrangement into compliance with the ACA by June 30, 2015. If you need assistance with this task or other related issues, contact your BKD advisor.