[fname], I am sending this email because of new IRS rules on wages & healthcare. 

If you are reimbursing your employees for health insurance (through payroll or other means), you have to make sure you get your employee's health insurance reimbursement dollars on the employee's W-2's if you don't have a group plan the employees are participating in.


Mechanically you need to add up the amounts you have been reimbursing your employees through Dec. 31, 2014 and individually put it on the W-2 for each employee. This amount has to added to Gross Wages and you'll or your payroll company will have to calculate the payroll taxes that are associated with that income.

If you fail to do this the penalties are $100/employee/day if this amount is not included on the W-2. So an example of 1 employee's penalties if you miss it is $36,500 ($100/day x 365 days/year).

If you pay employees money to go out and buy their own health insurance then you have to include those amounts in the Wages for your employees, meaning it has to be on their W2 when you create & mail W2's out at the beginning of 2015.

As these IRS and ACA (Affordable Healthcare Act) issues and rules are issued and updated I will continue to let you know.

If you have any questions please feel free to call me here at the office.  Thank you.



Monica Rebella, CPA/IAR
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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