I am sending this email to you because you might be subject to a new (very small -- $ 1 per covered employee) little known excise tax based on your employees who participate in any employer paid/subsidized medical expense reimbursement plan, commonly called Cafeteria, HRA (Health Reimbursement Account) or Flexible Spending Plans. If you merely pay insurance premiums for employees, this does NOT apply to you.

Since this is not an income tax I have not become expert in it, plus each client/employer's situation has subtle differences which would affect whether the employer needs to file the form.

This is a brand new excise tax, paid on Form 720 by July 31. If it applies to you and you know how many "covered employees" you have then filing the form and paying the tax is very simple. Your benefits consultant may already be doing this for you, if it applies. Please call the consultant if you have any questions.

I am including a couple explanatory attachments and the form 720 and its instructions.

 

Monica
 

http://www.monicarebellacpa.com/Self-Insured-plan-fee-letter.doc

http://www.monicarebellacpa.com/patient-centered-outcomes-research.pdf

http://www.monicarebellacpa.com/f720.pdf

 

Monica Rebella, CPA/IAR
Rebella
Accountancy
507 E. First Street #A
Tustin,CA 92780
ph (714) 619-0667
Fax (714) 544-0236
email: mrebella@rebellacpa.com



This document was not intended or written to be used, and it cannot be used, for the purpose of avoiding U.S. federal, state or local tax penalties.

 

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