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Q:  We have a qualified high deductible plan for our 8 employees and fund their premiums in full as well as contribute $750/yr to their HSAs. If we are unable to continue funding the HSA and/or make them pay toward premiums, what penalties will we face?

By Carolyn F. Scanlan  August 15. 2012 3:00PM - Last modified: August 15. 2012 3:48PM

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A: Employers are not explicitly required to provide health benefits. There are no penalties for small businesses with under 50 employees.


Certain employers with more than 50 employees may be required to pay a penalty if either (1) they do not provide insurance, under certain circumstances, or (2) the insurance they provide does not meet specified requirements.

However, if you choose to continue providing insurance to your employees, a new small business health care tax credit provides a 35 percent tax credit on health premiums, with the credit increasing to 50 percent in 2014.

Here are two links that explain this in more detail:

http://www.healthcare.gov/news/factsheets/2011/08/small-business.html

http://www.healthcare.gov/using-insurance/employers/small-business/index.html

Question submitted by Maureen


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Blog - Health care


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