Employer Reimbursements For Health Insurance Policy Premiums–Care Needed

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Employers who reimburse employees on a pre-tax basis for premiums the employees pay on their own individual health insurance policies (whether under an Obamacare Exchange or otherwise) are at risk for a $100 per day per employee excise tax. This is according to a recent IRS Q&A.

There are those that assert such arrangements can be structured through Code §125 to avoid the excise tax.

Employers should tread carefully in this area.

 


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Charles (Chuck) Rubin, Gutter Chaves Josepher Rubin Forman Fleisher P.A. | Attorney Advertising

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