USA Expert Accountants only. Scenario provided.

[flguy]

I would like to know how accountants are effected by a client being a small business owner of less than 50 employees, converting from a group insurance health to releasing/terminating the health and having the employees obtain health coverage from the marketplace.

How would a CPA handle this situation?

What advise would you give your clients in reference to them looking into terminating their group health coverage?

 

[kirby]

A CPA would tell the client to expect 100% turnover very very soon if the client is not going to pay for any medical coverage.

 

[smallbushelp]

I wouldn't expect 100% turnover but the employees will be unhappy. Did the client do this because his business is cash poor or failing or did he do it because he just didn't want to deal with health coverage any more? I would suggest that he consider replacing the health coverage with some other type of compensation or benefit. He could give everyone a raise corresponding to the cost of the individual's coverage; set up a medical reimbursement plan and fund it with an amount equal to the individual's cost of coverage; set up a health savings account; or, set up a 401K plan and begin making matching contributions.