Employees, Health Insurance and Fringe Benefits

IRS Notice 2017-67 Answers Questions on Qualified Small Employer Health Reimbursement Arrangements

Recall that QSEHRAs were added to the tax law in late 2016 and have become a popular way to offer employees a tax deductible health benefit when the practice no longer provides group insurance.  (The reimbursements are also tax-free to the employees).  The requirements for a QSEHRA have been covered in prior Newsletters and are […]

Health Insurance “Discrimination” In the C Corporation

Can the C Corporation Cover the Insurance Costs (Including Medicare) of Just the Doctor (and His or Her Family) But Not Cover Others? Yes.  Under IRS Regulation 1.105-11(b), you can discriminate based on classes of employees, but not based on ownership status.  For example, there can be a Board of Directors resolution that the corporation […]

2018 Will be the Most Difficult Year Yet for “On-Exchange” Individual Health Insurance

Individual insurance is sold one of two ways, either “on-exchange” or “off-exchange.”  On-exchange means that it’s sold on the government website healthcare.gov or state equivalent.  Off-exchange means it’s sold directly from the insurance company and not over a government website.  Federal subsidies are available for on-exchange plans for people with low incomes.  There are no […]

Paperwork to Keep in Each Employee’s File

We should be keeping back-up support for decisions to hire and fire employees, employees’ tax withholding, retirement plan documents and notices regarding fringe benefit programs.  Specifically, we should retain hiring documents such as employee applications and resumes.  Also keep any training documents and performance related documents, even if you don’t do performance reviews.  You should […]

Defending Yourself Against a Sexual Harassment Claim

Following the daily stream of allegations made against Harvey Weinstein, Kevin Spacey, etc., it wouldn’t surprise us if there is an uptick in claims brought against business owners.  Heck, four women recently accused 93-year-old-wheel-chair-bound George H.W. Bush of improper touching.  Here are two things that will be of tremendous value if ever a claim is […]

If Family Members or Employees Have Dental Insurance, How Do You Waive Their Co-Payments Without Committing Insurance Fraud?

We suspect that most doctors don’t charge the co-pay and report their full fee to the insurance company.  This is “aggressive” and is technically a violation of the contract with the insurer.  However, we have yet to hear of a case where an insurance company ever enforced this rule in the case of waived co-pays […]

Employer Provided Health Insurance Grows More Expensive as Fewer and Fewer Employers Offer It

According to a recent poll by the Kaiser Family Foundation, annual premiums for a family plan are approaching $19,000 in 2017. On average, employers bear 69% of the cost (about $13,000), and employees pick up the remaining 31% (or $6,000) through payroll deductions. Because of the often out of control premium increases, the percentage of […]

Employee Time Out of the Office

If your office is open four days per week, you can (should) require that employees schedule their discretionary appointments (haircuts, dental checkups, veterinary visits) for their off day and not during regular work hours. The federal and state employment laws do not restrict this policy when it comes to these non-emergency types of appointments. But, […]

The IRS is Helping Victims of Hurricanes Harvey and Irma

If you are located in a federally declared disaster area, then:  Your 2016 income tax return deadline is extended to January 31, 2018 so long as you’ve already claimed the six month filing extension.  Estimated tax payments that are originally due Sept. 15 and Jan. 16, 2018 are also extended to that date. The rules […]

HSAs Can Make Tax-Free Reimbursements for Medicare Part B and Part D Insurance Premiums

This is true whether or not you have enrolled in Social Security and the Medicare premiums are being withheld from your Social Security benefit checks.  You can also use your HSA to reimburse yourself for the premiums paid for the Part D prescription drug benefit, Medicare Advantage and long-term care insurance premiums. We like to […]