Avoid Tax Penalties
Los Angeles, CA (PRWEB) December 03, 2015
With minimal fanfare or public outcry, the IRS instituted new changes to the tax code earlier this year that could have a devastating effect on people who are employed by small businesses.
According to IRS Notice 2013-54, companies will be penalized for setting up health reimbursement accounts (HRAs). These accounts allow workers to use pretax money to pay for the cost of their health insurance. Under the new mandate, fines for this type of set up could amount to as much as $100 per day per employee, or $36,500 per employee per year.
Many businesses are not big enough, nor do they have the financial wherewithal to have human resources departments or purchase group health insurance for their employees. Instead they open and fund HRAs for their workers. Now that this practice has become financially challenging, employers concerned about the well-being of their staff will need to pursue other options. Under Notice 2015-17, the IRS is providing transition relief from the excise tax, however this only applies to certain types of employer healthcare arrangements.
Group health insurance, which is purchased by the employer and provides lower premiums than individual policies, has long seemed financially out of reach for many micro-businesses with tight budgets. However, Business Insurance Quotes is changing the way entrepreneurs and their workers view group health insurance.
The majority of working Americans and their families still receive group health insurance as a benefit. With group plans, employers generally pay 50% or more of the health care costs of their workers and their dependents. Some businesses also provide employees with Premium Only Plans (known as POP Plans) that enable them to pay their health care premiums on a pretax basis.
Now that the IRS is taxing HRAs, more entrepreneurs are looking for alternative affordable health insurance options. That’s where Business Insurance Quotes can help. They offer a fast, three-step process for anyone looking for the best and most affordable group health insurance available. Entrepreneurs fill out a short questionnaire with some basic information. Employers then have the opportunity to compare rates from multiple health insurance carriers all in one place. This is a much faster and more efficient option for finding the best plans for any small business owner.
Business Insurance Quotes is happy to assist anyone looking for more information about all types of group health insurance. They can be reached via their website or by telephone.