However, the IRS had issued transition relief for small employers that offered this type of arrangement to provide them with additional time to obtain group health coverage.
Small employers should be aware that this transition relief is ending on June 30, 2015. Any small employer that still offers this type of arrangement after June 30 could be subject to an excise tax of $100 per employee per day until the violation is corrected.
If you are doing this kind of reimbursement. Now is a good time to take a look at a group benefit plan to preserve the tax savings for your company and your employees too! Contact Us for More information! (800) 846-5902.