By MRCTV, Special for USDR
An obscure IRS Obamacare rule takes effect today under which small businesses that get caught helping their workers buy insurance or pay medical bills can be fined 18 times more than larger employers that don’t any provide coverage at all – up to $500,000 a year.
Under IRS Notice 2013-54, “these employer payment plans are considered to be group health plans subject to the market reforms” – and do not comply with the Affordable Care Act.
Under the rule spawned by 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’s $36,500 per employee up to $500,000 in total.
The penalty on businesses for failing to comply with the employer mandate is “only” $2,000 per year.
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