Employer Reimbursement for Health Insurance: Now with Less Taxes!

Written by Alexander Harris Laughlin
Published on Dec. 10, 2016
Employer Reimbursement for Health Insurance: Now with Less Taxes!

Last year the IRS began enforcing a penalty on businesses that, instead of providing coverage for their employees directly, simply reimbursed them for medical expenses or the cost of the insurance they themselves had chosen. Now, this kind of flies in the face of everything the soon to be dismantled Affordable Care Act was aiming at since it mostly affected small to medium size businesses and the penalty was 100 dollars a day per employee, up to 36,500 a year per employee for employers that were providing (if by proxy) their employees with health insurance.

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