Healthcare

Small Business Healthcare Relief Bill (HR 2911; Sen 1697) Would Roll Back IRS Rule Fining Small Businesses for Reimbursing Health Care Costs

Small Business Healthcare Relief Bill (HR 2911; Sen 1697) Would Roll Back IRS Rule Fining Small Businesses for Reimbursing Health Care Costs

In response to IRS code 4980D and IRS Notice 2015-17, a group of bipartisan lawmakers have introduced new legislation that will roll back the IRS rule imposing fines on small businesses providing Health Reimbursement Arrangements (HRAs).

The proposal would allow small business with fewer than 50 employees to continue to use pre-tax dollars to reimburse employees for healthcare expenses. It would further protect business owners from the current penalties for providing reimbursements. This allows employees a choice in selecting their own insurance from the available exchanges, usually at a much lower cost than what the employers are paying through a qualified group plan.

Within the last week, National Federation of Independent Business (NFIB) and The National Association for the Self-Employed (NASE) have called on Congress to act.

The legislation was sponsored by both Republicans and Democrats, including House Ways and Means member Charles Boustany (Louisiana), Representative Mike Thompson (California) and Senators Charles Grassley (Iowa) and Heidi Heitkamp (North Dakota).

If the legislation is not approved, employers that continue to offer HRAs may be subject to a $100-per-day, per-employee penalty, up to $36,500 for the year.

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Jeffrey Mathews

Jeffrey Mathews

Jeffrey B Mathews CPA, LLC provides Sulphur and Lake Charles accounting services for small to medium businesses. We serve companies throughout Louisiana, Texas and beyond with our virtual CFO and outsourced accounting plans. Look to us for help with your business accounting,payroll, and advisory services -- all for an affordable, fixed rate plan. Our satisfied clients includes companies across start-ups, medical, professional, technical, retail, and service industries. Our services will include helping you with cash flow management, budgeting, senior-level financial decision making, creating a tax strategy and reviewing your insurance policies in order to ensure that you are well-protected. With our meticulous attention to detail, we help to make sure that you understand what is happening with your accounting process and financial plan at every turn. We will make sure that our role as part-time chief financial officer translates into full-time confidence. Locations served include Lake Charles, Lafayette, and Baton Rouge from our CPA firm headquartered in Sulphur, La and other locations coming soon.

JEFFREY B. MATHEWS, CPA, LLC
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