The Wagner Law Group Description
Wagner Law Group, A Professional Corporation, is a nationally
recognized ERISA & employee benefits, estate planning,
employment, labor & human resources practice.
in 1996, The Wagner Law Group has 22 attorneys engaged
exclusively in employee benefits, estate planning and
employment law. Six of our attorneys are AV rated by
Martindale-Hubbell as having very high to preeminent legal abilities
and ethical standards. The firm is among the largest ERISA boutiques
in the country. Our practice is national in scope, with clients in
more than 40 states and several foreign countries.
Wagner Law Group
Fax: (561) 293-3591
7108 Fairway Drive
Palm Beach Gardens, FL 33418
Francisco, CA 94104
February 27, 2015
Health and Welfare Law
IRS Provides Transition Relief
for Small Employer Health Premium Reimbursements
The IRS has issued Notice
2015-17 to provide small employers with temporary, retroactive relief
from the excise tax imposed on health premium reimbursement
arrangements that fail to meet the Affordable Care Act's
("ACA's") mandates regarding group health plans. Small
employers that have reimbursed employee individual health insurance
policy premiums may benefit from this relief.
Background. The IRS views an arrangement under which an
employer reimburses an employee's individual health insurance premium
to be a group health plan subject to various ACA mandates, including
the prohibition on annual and lifetime limits on essential health
benefits and the requirement for unlimited, first-dollar coverage for
preventive care services. (See the Alert of 5/29/14.) Premium
reimbursement arrangements cannot satisfy either of these ACA
The IRS has stated that
premium reimbursement arrangements violate the ACA. As a result,
beginning in 2014, employers that maintain these arrangements became
subject to a $100-per-day-per-employee penalty. The penalty is to be
reported and paid by the employer, using Form 8928.
Transition Relief in
Notice 2015-17. Notice 2015-17
provides retroactive relief from the $100-per-day-per-employee
penalty for the following two situations:
employers (under 50 full-time and full-time equivalent
employees) who directly pay or reimburse individual health
insurance policy premiums of employees from January 1, 2014 to
June 30, 2015.
corporations that reimburse or directly pay individual health
insurance policy premiums for over 2% shareholder-employees from
January 1, 2014 through December 31, 2015.
For 2014, the determination of
an employer's status as a small employer is based on the employer's
2013 calendar-year work force, and for the first half of 2015, the
determination is based on 2014. An employer may take advantage of
prior guidance allowing the determination to be based on any
consecutive 6-month period during the prior year.
Action Steps for
Employers. Small employers that
have been paying or reimbursing premiums for individual insurance
contracts must stop doing so by June 30, 2015 to avoid being subject
to the $100-per-day-per-employee penalty.
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