For Immediate Release: June 24, 2016
Contact: Ben Gann – (202) 367-2346
NLBMDA ACTION ALERT:
Allow Health Care Flexibility for Small Businesses
Ask Your Senators to Pass the Small Business Health Care Relief Act (S. 3060)
Last week, the House of Representatives passed the Small Business Health Care Relief Act, which allows small employers the flexibility to offer pre-tax dollars to help pay premiums and/or other out-of-pocket costs associated with medical care and services. Specifically, the bipartisan legislation allows employers with less than 50 employees to provide Health Reimbursement Arrangements (HRAs) to employees without being penalized.
Under an HRA, an employer can set aside pre-tax money to reimburse employees for premiums and other out-of-pocket expenses. The money cannot be deducted from an employee’s paycheck, but HRA’s allow employers to limit some spending on health care each year.
Historically, HRAs have been a valuable option for employers wanting to help their employees pay for health expenses with tax-free dollars. However, effective July 1, 2015, the Department of Treasury issued guidance under the authority of the Affordable Care Act (ACA) that employers continuing to offer HRAs are subject to a $100 per day, per employee penalty totaling up to $36,500 per year.
The Small Business Healthcare Relief Act will:
The National Lumber and Building Material Dealers Association (NLBMDA) represents its members in the national public policy arena. Founded in 1917, the association represents over 6,000 member locations operating single or multiple lumber yards and component plants serving homebuilders, subcontractors, general contractors, and consumers in the new construction, repair and remodeling of residential and light commercial. www.dealer.org.