The corporation is reimbursing 100% of the insurance premiums for the shareholder/owner. To avoid discrimination, the corporation would also need to OFFER to pay 100% of the insurance premium for any employees. What employee would turn that down?
The IRS issued a Notice saying the discrimination penalty won't apply until they clarify things with more Regulations (which they have not done yet). HOWEVER, the way I read it, the IRS may not have the authority to do that because the discrimination penalty is part of the Health code, not the Tax code. The ERISA experts also say the penalty still applies.
I would amend the 941s.
On the other hand, this year the $100 per day per penalty will most likely be waived for most people. The code indicates that if the taxpayer did not know about this, and has exercised "reasonable diligence" and had "reasonable cause and not to willful neglect", that the tax may not apply IF it is corrected within 30 days of finding out the error.
That's a different animal. However, if the EMPLOYER is CONTRIBUTING to the employee's HSA that is NOT combined with an EMPLOYER High Deductible Health Plan, that might be problematic.
The IRS issued a Notice saying the discrimination penalty won't apply until they clarify things with more Regulations (which they have not done yet). HOWEVER, the way I read it, the IRS may not have the authority to do that because the discrimination penalty is part of the Health code, not the Tax code. The ERISA experts also say the penalty still applies.
I would amend the 941s.
On the other hand, this year the $100 per day per penalty will most likely be waived for most people. The code indicates that if the taxpayer did not know about this, and has exercised "reasonable diligence" and had "reasonable cause and not to willful neglect", that the tax may not apply IF it is corrected within 30 days of finding out the error.
That's a different animal. However, if the EMPLOYER is CONTRIBUTING to the employee's HSA that is NOT combined with an EMPLOYER High Deductible Health Plan, that might be problematic.
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