Small Business Health Plan Compliance Toolkit
A simple packaged solution to help small business owners and advisers comply with 2015 tax law changes for employer-provided health plans and mitigate potentially severe tax penalties.
This toolkit is designed to help small businesses and tax advisers avoid or minimize the tax penalties included in the 2015 market reform requirements of the Affordable Care Act. Specifically, the kit helps firms end non-compliant practices and convert their offending health plan arrangements to a permitted Employer Payment Plan as described in IRS Notice 2013-54 Section II B when employers have previously paid or reimbursed the cost of:
Individual health insurance (a Section 105 plan)
Uninsured expenses outside of an integrated group health insurance (a Medical Expense Reimbursement Plan (MERP) or Health Reimbursement Arrangement (HRA)
Health Savings Account (HSA) in addition to a Flexible Spending Account (FSA) with carry-over benefits from the prior year.
The kit is intended to help employers minimize the tax and legal risks outlined in IRS notices 2013-54 and 2015-17. NOTE THAT NO ASURANCE IS OFFERED THAT SMALL BUSINSSES WILL AVOID ANY TAX PENALTY. The approach incorporated by the Toolkit materials is suggested as a good faith compliance measure that, in some cases, may help to support an application for abatement of previously accrued tax penalties. Without corrective action, small businesses run the risk of tax penalties for improper wage tax informational filings as well as the severe $100 per employee per day penalty under IRC 4980D.
The compliance and tax mitigation strategy is to address the offending health plan as soon as possible by amending or terminating the plan (or converting it from an employee benefit plan to a payroll system accommodation and then addressing penalty relief provisions built into IRC 4980D.
The toolkit contains:
- Sample document explaining termination of prior health plan and new option available
- Sample email cover note communication to employees
- Sample employee election form
- Sample corporate resolution
- Sample ACA notice of Health Insurance Marketplace eligibility
- Order form for customizing the tools
- Copy of engagement agreement and fair use agreement.
The tools are drafted in the Office 2016 (Office 365) version of Microsoft Word.
The tooklit is not offered as a separate item but only in combination with professional service.
The toolkit is marketed directly to small businesses and to some advisers without charge in connection with a consultation service. There is no separate charge for the Toolkit if requested along with this type off consulting arrangement. If this type of free support offer does not apply then see the Pricing page for rates for regular adviser support rates.
For background information see "Novak’s 2015 small business health plan tax article bibliography". The bibliography is meant as a free public resource and the toolkit is meant as a solicitation of commercial service
Schedule a free call with Tony Novak CPA, MBA, MT to ask how your firm can reduce costs and improve employee satisfaction with your benefit options. No fee for initial consultation.
FreedomBenefits.org web site is independently owned and operated by Tony Novak Certified Public Accountant operating under the trademarks "Freedom Benefits", "OnlineAdviser" and "OnlineNavigator". Opinions expressed are the sole responsibility of the author and do not represent the opinion of any other person, company or entity mentioned. Tony Novak is not an agent, broker, producer or navigator for any federal or state health insurance exchange but may provide uncompensated advice, reviews and referrals to these official resources. Novak is compensated as an accountant, adviser, affiliate, consultant, marketer, reviewer, endorser, producer, lead generator or referrer to some of the commercial companies listed on this site. Information is from sources believed to be reliable but cannot be guaranteed.