I received this important little gem in today’s newsletter from the National Association of Tax Professionals —

Guidance Not Yet Provided for 2% Shareholders

Employers are potentially subject to an excise tax for reimbursing or paying for individual health insurance policies, known as the $100 per day per employee penalty ($36,500 per year). According to Notice 2015-17, for two-percent shareholders (as defined in §1372(b)), transitional relief lasts through December 31, 2015, or until further guidance has been provided.

Since further guidance has not yet been provided, the health insurance reimbursement of two-percent shareholders can continue to be reported as such on the April Form 941 provided it meets the criteria set forth in Notice 2008-1.