Thanks to the Affordable Care Act (ACA), the health of the individual insurance is more affordable than ever. In fact, many small and medium employers the change are to be reimbursed on a premium refund solution individual health insurance as an alternative to group health insurance. his employers able by their employees access to individual insurance advantage has to have a better and more affordable health care benefits to offer premium tax credits offer, including.
It is important that employers, the premium reimbursement plans compliance considerations are aware implement in relation to tax-free reimbursement of health insurance premiums. Therefore, most employers who use these plans to manage a compliance bonus reimbursement software vendors to ensure that they and their employees remain with compliance. While some in the industry argue that it is not possible to reimburse individual health insurance if an employee a premium received tax credit, clarifies this article, how to stay in compliance, while doing this.
How can employees access Premium Tax Credits
under the ACA, the federal government premium tax credit provides many people buy more affordable individual health insurance through the health insurance to help marketplaces. The health insurance tax credits are "Advanced-payable" meaning they can premiums be applied towards the employees when they buy health insurance.
The employee can only access the premium tax credits if they buy insurance from the marketplace. The tax credits are households earning up to 400% of the federal poverty level (FPL) available. As the following chart shows, this means earning households to $ 46,680 for an individual in 2014, or $ 95,400 for a family of four, qualify 
chart :. Affordable Care Act 101
The premium tax credits act as a cap, pay how much employees for health insurance. The insurance premium is limited between two percent and 9.6 percent of their income on a sliding scale. For example, as the graph above shows, if an employee makes $ 23,340 per year (0 percent FPL), the maximum amount it is paying for health insurance 6.34 percent of their income, the $ 1,480 / year ($ 123 / month) is.
a premium refund plan "reimbursement of employees individual health insurance premiums
With reimburse employers for individual health insurance tax-free employees. Employers fix their costs on a monthly basis, and employees can choose a health insurance plan that the best meets their health and financial needs. the use of software premium refund helps employers with the administrative tasks of the premium refund plan and ensures compliance.
argue Some people that employers reimbursing individual insurance a premium refund plan it is not possible if the worker is an advanced premium received credit control.
with a credible reimbursement software provider, but can reimburse their employees for individual health insurance premiums with confidence employers that they in accordance remain with the rules relating to the tax-free reimbursement of health insurance premiums.
It is important to have a credible premium reimbursement software provider to choose to validate any reimbursement. The responsibility of the software provider is to ensure that employees only have to obtain refunds for valid health insurance premiums.
The software provider should also check each premium payment document, to verify that the employe has received a premium tax credit. By requiring employees prove exactly what they are paying for their health insurance out of pocket, the employee will receive only the refund for the non-subsidized part of their premium.
The premium reimbursement software vendors should also valid require documentation. For ten years on file to ensure that any refund had stored for an IRS qualified health The documentation should be placed in the event of an IRS audit on the file to the employer and employees.
Do you have any questions about premium refund to protect?
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