The Oregon Biz Report - Business News from Oregon

Read about accutane journal moderate acne here

Bill voids IRS penalty on business health option

December 23, 2016


The National Federation of Independent Business (NFIB)  applauded Senate passage of a measure eliminating a controversial IRS penalty on businesses that reimburse workers for the cost of health insurance. Last week, the House passed an identical version of the bill.

“Both the Senate and the House have now passed critical legislation to protect small business owners from outrageous IRS fines,” said NFIB President and CEO Juanita Duggan. “Our research showed that a significant percentage of NFIB members reimbursed employees for the cost of health insurance, a practice the IRS tried to stamp out despite the lack of clear direction from Congress. Now Congress has acted to make it clear that businesses should not be punished just for trying to help their employees pay for health care costs.”

In July of 2015, the IRS began enforcing a new penalty on employers who reimburse their workers for the cost of premiums or health care services. Neither the penalty nor the reason for it appears anywhere in Affordable Care Act. Nevertheless, employers who violate the rule face fines of $100 per day, per worker. That amounts to $36,500 a year, which is 18 times larger than the penalty imposed on larger employers that don’t offer insurance to their workers.

Under Section 18001 of the 21st Century Cures Act, small business owners would be allowed to compensate employees for the cost of individual insurance premiums or medical visits. President Obama has issued a statement supportive of the legislation.

Print This Post Print This Post    Email This Post Email This Post

Discuss this article

no comments yet

Leave a Reply

Your email address will not be published. Required fields are marked *

Please answer the following question to confirm that you are a real person: *

Top Business News


Top Natural Resource News


Top Faith News


Copyright © 2018, OregonReport. All Rights Reserved. | Terms of Use - Copyright - Legal Policy | Contact Oregon Report

Stay Tuned...

Stay up to date with the latest political news and commentary from Oregon Business Report through daily email updates:

Delivered by FeedBurner

Prefer another subscription option? Subscribe to our RSS Feed, become a fan on Facebook, or follow us on Twitter.

RSS Twitter Facebook

No Thanks (close this box)