$36,500 per employee, per year, nondeductible!

The IRS has threatened employers with ACA penalties of $100 per day, per employee, and non deductible or $36,500 per employee.  This makes those $2,000 and $3,000 penalties look diminutive.

Employers who maintain a “non-integrated” employer payment plans would be subject to these penalties.   These would include HRAs, excluding retiree-only and excepted benefits HRAs.  Employers need to know that a non-integrated employer payment plan is just one of the many potential triggers of these potentially devastating penalties.