Surprise announcement by DOL affects small business health care planning

Posted on Posted in Accounting, Small Business, Tax Planning

I didn’t see this one coming either:

A small business employer who gives an employee money to help pay for the cost of Obamacare under any circumstances is considered to have set up an illegal group benefit plan that may trigger penalties under the Affordable Care Act. The warning is titled “FAQs about Affordable Care Act Implementation (Part XXII).
That’s the extreme out-take of this recent (November 6, 2014) warning by the U.S. Department of Labor. I wrote about it here: http://tonynovak.wordpress.com/2014/11/13/dol-warns-employers-do-not-reimburse-individual-health-insurance/.

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