Ref: IRS Notice 2013-54

Relief under Notice 2013-54 ended JUNE 30, 2015. That relief allowed small employers (i.e., those with few than fifty full time equivalent employees) to reimburse employees directly for health care that they obtained privately. If the employer continues such reimbursement plans, they could be subject to a $100 per day penalty ($36,500 per year) per employee.

Small employers, those not required to cover employers through ACA, are left with a few options:

1. Discontinue health care for employees completely… perhaps with an increase to employee wage rate so that they can more afford to buy coverage through the “marketplace.”

2. Buy small employer ACA group coverage through the ACA marketplace.

Call your DMD CPA professional for more information on this subject.