Article Date:
February 2019

Word Count:



Q&A: Avoiding the $100 a Day per Employee Penalty for S Corporations



In S Corporation Fringe Benefits after the Recent Tax Reform, you state, “An S corporation that directly pays for or reimburses employees for employee-arranged health insurance premiums (as opposed to paying premiums for company-arranged group coverage) faces the Affordable Care Act penalty of $100 a day per affected employee ($36,500 per employee per year).”


Can you clarify how a single-person S corporation is supposed to set up health insurance payments?


A single person can set up only an individual health plan, since one person is not a group. Does this mean that the S corporation paying the individual health plan premiums for the one shareholder-employee faces the $100-a-day penalty? ... Log in to view full article.

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