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Oskaloosa, Iowa 52577 | Sounds like your tax person is on the right path.
It has been a known item for some time that if an employer (your C corp in this case) has only one employee...then the new ACA rules are not applicable to that employer...and therefore the payment of the health premiums is ok, without taxing it to the employee.
Therefore those situations of two or more ees cannot "reimburse" in any way an ees ins premiums...even by er paying the ins co directly and then putting the payments on a w.2.
We therefore are going to have the ers write bonus checks, have the ees deposit those, and then write checks back to er in the amount of the premiums paid to ins co by er.
The IRS legal dept told tax guru that even tho the result would be the same tax effect, they believe the mere putting the transaction on w.2 would still violate the "no reimbursement" rule.
A wrinkle that guru brought up today....which I have not had a chance to research yet.... Is that since ers can still discriminate in providing health ins....and since the ACA apparently defines "2 or more employees" in terms of the number to whom ins is provided..... The provisions of ACA can be circumvented by limiting the number of covered ees.
We have numerous situations of the only employees of the corp are husband and wife. I thought that would kill med benefits.....maybe not now. | |
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For White Shadow---- re incorporation
