Brian L. Anderson, DeWitt Ross Stevens s.c.
Does your veterinary practice, in lieu of providing group health insurance coverage, pay (either directly or as reimbursements) the health insurance premiums for an individual policy in the name of any employee? If the answer is yes, then such payments must stop.
Over the last two years, the IRS stated several times that, beginning January 1, 2014, such payments are considered a group health plan that violates the Affordable Care Act and that results in a penalty tax of $100 per day per benefited employee. If you were to make such payments for two employees for 365 days, therefore, you would incur a penalty in the amount of $73,000 (365 times 2 times $100).