Benefit dollars for insurance coverage

Q: Per the ACA, can an employer get a tax break for providing a benefit dollar to employees with an individual health plan?

A: Employers can provide a benefit dollar, but there is no tax break for doing so. Any benefit dollar provided must be included in regular income for tax purposes to avoid any “double dipping” (somebody getting double tax benefits on the same dollar). Large employers (50+ full-time equivalent employees) are strongly discouraged from reimbursing employees for purchasing individual insurance and may be penalized $100 a day up to $36,500 per year, per employee, for doing so.  The employer mandate under the ACA is for large employers to actually offer health insurance rather than encourage employees to shop for an individual health plan.

Small employers, however, are not under the same obligations as large employers.  If you are a small employer wanting to provide health insurance and wondering about available tax credits, please contact us at

John Farnsworth, Chief Executive Officer

Author John Farnsworth, Chief Executive Officer

John learned at an early age the value of hard work, forming his first company before his 18th birthday. He co-founded (originally “Innovative Staffing”) in 1999 and has an established reputation for his expertise, work ethic, and love for traveling.

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