For most small businesses the traditional health insurance group is out of reach. But that does not mean health benefits are not feasible. Alternatively, small businesses adopt employee health benefits of allowances to help with the cost of personal health insurance for employees. 
When evaluating employee health insurance benefits, there are some common routes to go. how each option works, and what options are still compliant?
In this article we will discuss four common scenarios to give employees an allowance for health benefits and what you need to know about each option:
-
Provide taxable Stipend
-
Use a free repayment plan formal tax
-
to pay premiums directly to the insurance company
-
paying employees without a formal plan
1. taxable Stipend
Currently, taxable allowances are a way consistent with providing an allocation of health benefits employees.
With a taxable allowance, large business increase wages or provides taxable increases. With this option :.
-
Employees receive a fixed, taxable allowance to buy health insurance
-
the employees receive money or not they actually buy health insurance.
-
monthly staff contributions are generally added to his salary.
-
At the end of the year, employees receive a form stating the amount of their allowance they must report as income on their tax returns on personal income.
2. Formal tax-free repayment plan
Currently, a duty refund plan tax is a manner consistent with providing a grant of employee health benefits, as long as the plan is designed to comply with all applicable federal rules
with a formal repayment plan tax free, the company uses a tax benefits repayment plan (eg :. section 105 health repayment plan ) to give employees an indemnity health benefits. With this option:
-
Employees receive a fixed amount of the allowance to purchase health insurance, but only receive money if they actually buy health insurance.
-
Employees buy their own individual health insurance policy and provide proof of their employer (or the third party supplier of the employer).
-
Employees receive monthly payments until the amount of the allowance that are generally added to their paycheck tax-free.
3. Pay the premiums directly to the insurance company
Employers should avoid paying insurance premiums -maladie employees directly because of ERISA and ACA violations and potential costs.
In the past, it was somewhat common for employers to pay health insurance premiums for employees directly to the insurance company. However, there are three main reasons why it is not recommended:
-
Paying for individual health insurance without a qualified repayment plan (eg : Section 105 medical reimbursement plan causes the employer to "approve" the individual health insurance plans, which can lead to ERISA violations
-
pay directly also causes payments to become taxable income for employees.
-
According to the IRS, to directly pay for individual health insurance is considered as a type of plane employer payment . Because the payment of employer plans are not consistent with the affordable reforms care Act, employers face penalties for non -consistency from this year.
Tip - employers who currently pay directly for employee health insurance premiums should go an allowance reimbursement arrangement complies or taxable in June 2015 to avoid penalties
more :. See this chart to understand if you pay the employee health insurance correctly
4. Reimburse employees without a formal plan
Employers should avoid repaying employees directly (without a formal plan) for their different health insurance premiums for violations and ACA potential costs.
the last common scenario to give employees an allowance for health benefits is to reimburse employees for health insurance premiums justified without the use of a complaint and formal arrangement.
Similar to number three above, the repayment of individual health insurance of employees directly (without the use of a formal complaint and arrangement) is also considered a type of payment of employer's plan. Because the payment of employer plans are not consistent with the affordable reforms Care Act, employers face penalties for non-compliance from this year
Tip -. Employers currently pay directly for employee health insurance premiums should transition to a reimbursement scheme compliant or a taxable allowance in June 2015 to avoid penalties.
Conclusion
Offering allocation of employee health benefits allows small businesses to provide employees health benefits - often the first time. But remember, make sure you offer how the allocation of employee health benefits is consistent with the rules and regulations.
What questions do you have about an allocation of employee health benefits? What other options have you seen? Join the discussion below.
0 Komentar