An executive summary of the brand new guidance this week is as follows:

  • No penalties will be assessed for small employers (less than 50 FTEs) who have violated individual market health insurance policy premium reimbursement rules through June 30, 2015.  This relief does not extend to stand-alone HRAs or other arrangements to reimburse employees for medical expenses other than insurance premiums.
  • S corporation healthcare policy premium reimbursement arrangements for 2-percent shareholder-employees under Code§ 162(1) and IRS Notice 2008-1 are unaffected by the ACA until further notice and at least through December 31, 2015 .  This is the self-employed health insurance deduction.
  • Employers providing an increase in taxable compensation that is not contingent on the purchase of health insurance are not in violation of the ACA.

Feel free to contact us if you have any questions.