IRS to fine some biz reimbursements
According to a recent DTN report, small business owners including farmers and ranchers could be largely affected by the Affordable Care Act or Obamacare – in ways they maybe hadn’t realized. “They could face massive fines starting in 2014 if they offer to reimburse employees’ individual expenses with pre-tax dollars,” the story said. Some smaller employers, including farmers and ranchers, offer pre-tax payment plans to their employees that reimburse them for health care services, insurance premiums and other expenses. The payments had been tax deductible for the employer.
IRS, last fall, made the announcement that it would begin to fine pre-tax employer reimbursements such as those when 2014 plans are renewed. Fines would be $100 per day per employee or $36,500 per year. Some ag CPAs according to the story, are referring to the fines as a “death sentence” to small business owners.
“Going forward, virtually any employer assistance on pre-tax health premiums or co-pays will violate market reforms,” Minnesota CPA Andy Biebl said in the DTN story. “If you have any of these plans, you will just have to tear them up.” F
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The Montana Angus Tour was September 21-23, 2021 in the northern part of the state.