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
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.
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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.
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.