An obscure IRS rule took effect this week affecting small business owners who thought helping their employees by increasing wages or paying for their healthcare costs would be a great way to not provide health coverage through work.
Employers who have done this will find themselves paying $100 penalty A DAY PER EMPLOYEE.
“Under the rule, which the NFIB noted appears nowhere in the Affordable Care Act, employers who do not offer a group health plan, but give their workers additional pay to compensate for the purchase of health insurance or direct medical expenses, can be fined $100 per day, per employee. Over the course of a year that can add up to $36,500 per employee, up to $500,000 in total. In contrast, the penalty on businesses for failing to comply with the employer mandate is only $2,000 per year.”
New Tax Penalty Starts Today on Small Business Health Insurance
Washington, D.C. (July 1, 2015)
By Michael Cohn
Last week I posted Turbo Tax was suspending efiled returns for the State of Minnesota due to fraud concerns. As of late Friday afternoon, Turbo Tax has now suspended efiled returns for all states.
What does this mean for the Turbo Tax user? Generally, your return will stay on the Turbo Tax server until such time as they had a handle on the fraud issues. You can always mail your return, but note, IF you are due a refund it will take longer for the Revenue Department to process a manual return. This filing season was to be “the worst in 30 years” by the Taxpayer Advocate. All we know here in this office is that our clients are coming in much sooner, the IRS has seen a marked increase of efiling over the last year, and more people are owing taxes than ever before.
Please, do not shoot the messenger. Pass on this post and invite others to “Like” our page. We give timely tips not only on tax matters but also on budgeting and ways to save more for you!