Tax

Small Employers Must Conform to ACA by June 30 or Risk Substantial Penalties

June 2015
Author:  Robert Conner

Robert Conner

Director

Tax

Health Care
Manufacturing & Distribution

1801 California Street, Suite 2900
Denver, CO 80202-2606

Denver
303.861.4545

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.

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