December 22, 2014

Dear Valued Client:

At Larson & Company, it is our goal as your trusted advisors to have a clear understanding of the ever changing tax and accounting rules and guide you through them.  This letter is to inform you of new rules affecting 2014 and to ask you to contact us as soon as possible if it impacts you so we can examine your situation and create a solution before the year ends.

Recently we received updated information from the IRS clarifying how the Affordable Care Act (Obamacare) may impact some small business owners and their employees. According to Internal Revenue Service guidelines, small companies that reimburse health insurance premiums paid by employees for individual policies or for coverage bought on the exchange violate the new health care reform law.  The violation could result in a $100-a-day penalty per worker in 2014.

The new law does not affect:

  • Small businesses offering group health insurance coverage to its employees
  • S corporations whose shareholder is the only employee

If you are a small business that reimburses employees for health insurance premiums and have more than one employee (including owners), please contact us immediately.  Any violations need to be resolved before the end of this year.  We will review this issue with you, provide a solution and assist with any needed action so that you may steer clear of the tax hazards this new law may create.

Best wishes for a happy holiday season filled with prosperity and joy.


Larson & Company