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3 Important Obamacare Updates for Nanny Employers

Posted by Kathleen Webb on Mar 13, 2014 10:57:00 AM
Smart employers know that key benefits such as health insurance that is paid for in whole or part by the employer is an important employee recruitment and retention tool.

Obamacare Affordable Care Act Nanny Health Insurance

HomeWork Solutions shares with you 3 critical updates that household employers, nannies, and industry specialists need to be aware of.

  1. In general, a household employer can provide premium support for the nanny’s individual health insurance on a tax free basis. The insurance premium paid by the employer is not income to the employee and both the employer and employee enjoy these tax advantages. The devil is in the details.  Tax rules and regulations surrounding the health insurance industry are in a period of rapid change. HWS encourages employers to seek appropriate professional counsel when establishing health care reimbursement plans and insure that their reimbursement plan remains compliant with current rules and regulations.
  2. Household employers may purchase employee health insurance in the small business health insurance exchange (SHOP) and may be eligible for employer tax credits intended to encourage employers to offer health insurance to their employees. The federal SHOP exchange is delayed, an insurance broker is the current way purchase SHOP exchange policies.
  3. Individuals – nannies included – must have qualifying health insurance by March 31, 2014 or be subjected to a tax penalty of 1% of gross income, or $95 on your 2014 income tax return. This is known as the Individual Mandate. As of March 12, 2014 there is no extension of this deadline.

HWS provides this information as a courtesy to help you understand payroll tax implications the ACA.  This is not be construed as specific tax or legal advice. Guidance relative to the ACA / Obamacare is subject to revision and this may not be the most current information available.

Topics: nanny health insurance

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