As a small owner business, you want to help employees costs health care, but the traditional cover is inaccessible. Instead, like so small business around the nation, you help employees by paying their health insurance. Only, now there is a problem
On July 1, 2015, employers face penalties to give Shots employer payment . in other words repayment of health insurance for employees in the wrong direction.
Understanding these new reforms in health care can be confusing and sometimes frightening. But what you may not know is is a way to help employees with personal illness insurance and avoid costly penalties .
What is a plane employer payment
According to the IRS, a payment of employer plan is simply a arrangement where an employer :?
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pay employees bonuses directly (eg the insurance company), or
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directly reimburse employees for individual health insurance policies.? (Ie without using a formal repayment plan compliant)
What if we offer an employer payment plan
on July 1, 2015, if your company offers an employer payment plan, you are subject to penalties of up to $ 100 per day, per employee (see IRC Section 4980D ).
Why? payment schemes do not meet the new health reform laws required group health plans. For example, they do not cover preventive care
Related -. The new sanctions Start today reimbursement of employees Wrong Way
What are our options?
If your company has offered an employer payment plan, there is a consistent way to assist employees in their personal health insurance costs: set up a section 105 scheme reimbursement of health care (HRP) as ZaneHealth.
A section 105 HRP is designed to monitor the new health reform rules. How? HRP is structured to not reimburse employees for individual health insurance and basic preventive care premiums.
The use of Article 105 HRP, your company can help employees with personal health insurance costs and avoid costly. fines
Related - Employer payment plan compared to HRP - What's the difference
As an alternative to a formal repayment plan, your company can offer employees an allowance (bonus or increase) to use on health insurance, but this must be considered taxable income.
How can we move to a HRP?
to switch to an article HRP 105, follow these easy steps:
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Cancel the payment of employer Plan ( if there is a formal plan in place).
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Develop Section 105 of the Required Documents Plan ( see this sample Section 105 Plan ).
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Confirm the plan complies with the new health reforms, including the annual limit and preventive care rules described in IRS Notice 2013-54. Also make sure that the plan with IRS, HIPAA and ERISA rules.
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Educate and on board employees.
Tip: health reform legislation and federal regulations are complex. Many employers prefer to contract with a third party (such as ZaneHealth ) to make the repayments easier and follow federal regulations constantly changing.
Conclusion
If your company offers an employer payment plan, do not worry. You have two options to help employees with their health insurance and avoid paying costly penalties. The first option is to adopt a section 105 reimbursement system for health care, such as ZaneHealth. The second option is to provide a taxable allowance.
What questions do you have about payment plans or help employees with their individual insurance costs? Leave a question below. We will be happy to respond.
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