Estimated tax tip savings. This new IRS notice allows a last-minute employee benefit that can save you and your employees thousands of dollars in taxes for the 2014 tax year.
And better yet, the new notice could save you $36,500 per employee if you improperly reimbursed employee insurance premiums in 2014 (and the first half of 2015).
The IRS just came out with guidance offering huge (and very welcome!) relief for you as a small-business owner if you reimburse your employees—or yourself—for the cost of health insurance purchased on the individual market.
The agency announced that it would not enforce the $100-a-day penalty with regard to improper health care reimbursements for certain businesses until after June 30, 2015. (For background on this penalty, see Does Your Section 105 Plan (HRA) Work for You after Obamacare?)
And yes—it certainly would have helped if the IRS had given us this new information a few months ago (or a year and a half ago), before tax season and before you sent out your W-2s. But there’s still time for you to amend these forms and take advantage. This relief puts extra payroll cash in your pocket and both payroll and income tax cash in your employees’ pockets—and that should make everyone happy.
But this relief does not apply to all reimbursement practices or to all employers. Before you take action, you need to know ... Log in to view full article.