Article Date:
January 2017

Word Count:



Lawbreakers Rejoice! New Law Wipes Away $100-a-Day Penalty

By now there’s a good chance you know that a business with fewer than 50 employees could not reimburse any of its employees for individually purchased health insurance without facing the $100-a-day penalty ($36,500 per employee per year).


You may have



decided that’s a ridiculous rule and you’re not going to follow it.


stopped reimbursing or paying for the individually purchased health insurance and simply added that amount to the employees’ W-2s.


If you did either of the above, you were breaking the law as it stood before December 13, 2016. Now you can thank the 21st Century Cures Act (Public Law No: 114-255)1 for reinstating IRS Notice 2015-17 that wipes away the $100-a-day-penalty for small businesses—retroactively.


And if you were one of the many small business taxpayers who changed your systems to comply with the law and avoid the $100-a-day penalty, this forgiveness law likely outrages you (and properly so).


Let’s examine how this penalty forgiveness works and how you might benefit from it. ... Log in to view full article.

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