100 A Day Penalty Are You Exempt?

10/7/2019

The $100-a-day Penalty is quite simple for certain entities. You may have wondered why certain entities can pay for or reimburse a solo owner-employee’s individually purchased health insurance without worrying about the $100-a-day penalty.

The answer is that some entities payments of the solo shareholder-employee’s individual health insurance premiums are exempt from the $100-a-day penalty.

The exemption does not apply to health coverage for the rank-and-file employees. For the rank and file, you need either

a qualified small-employer health reimbursement arrangement (QSEHRA), or
group health insurance.

If you would like me to review your health coverage for compliance with the tax rules, please call me on my direct line at 262-358-8297.

Call Us! 262-358-8297

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Important Disclosures

Spencer Accounting Group, LLC does not provide investment, tax, legal, or retirement advice or recommendations in these blogs. The information presented here is not specific to any individual's personal circumstances.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

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Keana Spencer is an Accountant, Entrepreneur, and Educator to her clients, with a strong passion. Keana has over 10 years of experience and through her practice, she is a source of knowledge and strategies to her clients.

Keana founded this website and decided and created this blog page to offer a space for those seeking knowledge to understand, however not to be confused with advice or planning strategies.

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