Ref: IRS Notice 2015-17

Good news! The IRS is suspending the penalty under the Affordable Care Act (aka Obamacare) that had been slated for 2015 when an S corporation pays health insurance premiums on behalf of its more-than 2% shareholder(s).

Until further notice, the IRS won’t charge a penalty as long as the corporation follows Notice 2008-1 and includes the premium as a fringe benefit on the shareholder/employee’s Form W-2.  (Note that the shareholder-employee takes an above-the-line deduction on his/her individual return for the premium amount).

Please contact us if you need to know how to implement IRS Notice 2008-1 for your own company.