Saturday, September 26, 2015

Employers with fewer than 50 employees were promised a break by not having to provide group health insurance under the Affordable Care Act.



But now the IRS has served notice that under the rule that has been in effect since July 1 such employers are subject to $100 per worker per day excise tax if they help their employees with their health-care costs.

That could amount to a staggering $36,500 per worker annual tax.

“We were told over and over during the Obamacare discussions that if you had less than 50 employees there’s no requirement to provide coverage, so you don’t have to worry about any cost factor,” said Ron Aldridge, Mississippi director for the National Federation of Independent Businesses...

The Mississippi Insurance Department said: “The rule appears nowhere in the Affordable Care Act but was developed by the Obama administration’s regulation writers at the IRS.”



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