I mean, wasn’t corporate-provided health insurance basically initially offered because there was a tax advantage over just increasing salary? That’s sort of what I thought. Now that I think about it, I’m not sure exactly how we got our current model.
Our convoluted system of employer-sponsored health care is a result of wage controls imposed during World War ii, believe it or not.
Employers were not allowed to raise wages. So they found a way around that restriction by enhancing fringe benefits instead. Health insurance was a very popular benefit.
And yes, $2,000 per employee per year for failing to provide coverage at all.
It is $100 per employee per day for providing non-compliant coverage.
So if you have 100 employees and provide…
no coverage at all. Pay $2000 per employee in excess of 30 employees = $140,000
inadequate coverage, pay $100 x 365 days x 100 employees = $3,650,000 tax.
The $100 per day per employee penalty applies to a variety of other issues under the PPACA such as providing a better plan for some employees or not extending dependent coverage to age 26.
So whatever you do, do it all the way.