Federal government offers ACA excise tax transition relief to small employers
Posted On: 2-18-2015 | Posted By: Debbie Mathes, CPA
The IRS and other federal departments announced on February 18 they will offer transition relief to small employers that would ordinarily be subject to an excise tax under the Affordable Care Act.
Notice 2015-17 indicates small employers (essentially, all employers with fewer than 50 full-time employees not classified as an Applicable Large Employer under Code Section 4980H) that offer their employees reimbursement for the cost of individual health plans instead of establishing their own employer health plan would be granted transition relief from the excise tax that that would be imposed under previous ACA guidance. Employers offering reimbursement, which is considered an “employer payment plan,” instead of their own health coverage will be exempt from the excise tax for all of 2014 and January through June 30, 2015.
Small employers might be liable for the $100 per day, per employee, excise tax if they fail to offer health coverage after June 30, 2015.
New forms and guidance regarding ACA provisions are released by the IRS and other federal departments regularly, so contact your WK advisor for the latest information.