As a related note, the IRS has reconfirmed earlier guidance that prohibits companies who do not establish individual health care plans from reimbursing employees for health insurance premiums or paying for them with employees’ pre-tax dollars (not including them in taxable income). Per Notice 2013-54, the penalty can be up to $100 per employee, per day, which amounts to $36,500 per employee, per year. The IRS guidance to this specific question is as follows:
- The employer makes no contributions;
- Participation is completely voluntary;
- The employer’s involvement is limited to permitting the insurer to publicize the program and to collecting and remitting premiums;
- The employer receives no consideration for collecting and remitting premiums, other than reasonable compensation.