IRS Ruling Imposes New ACA Penalty

Wednesday, June 11, 2014

A recent IRS ruling will likely discourage employers that had planned to end their health-care obligations by sending employees to the exchanges. Some cities and counties have given employees a stipend toward the health insurance they would then obtain through the exchanges, and a number of municipalities have considered doing so; but the new ruling imposes a tax of $100 a day per employee for each worker who goes into the individual market place, the New York Times reported. The IRS indicated that wholesale moves of employees to the exchanges do not satisfy the provisions of the Affordable Care Act. The penalty applies to employers with at least 50 workers, is separate from the penalty for not providing any insurance at all, Governing reports.