5 Most Commonly Asked Small Business Tax Questions

Close up of calculator Most people think that federal income taxes are inscrutable, but we all have to deal with them anyway.

For small-business owners, there can be particular concerns.

Here are some of the most common small-business tax questions I’ve been receiving this year.

Health Insurance

I don’t offer health insurance to my employees. Can I reimburse them for their health coverage that they buy on their own?

This can be a very complicated area because of the Affordable Care Act (ACA). Employers with fewer than 50 full-time and full-time equivalent employees are not required under ACA to offer health coverage, although many smaller employers do so anyway. The Kaiser Family Foundation reports that 47 percent of employers with three to nine employees offered coverage in 2015. Some small-business owners that don’t offer coverage would like to help defray their employees’ costs for individual coverage. Here’s the problem: The government didn’t want small employers sending workers to the government’s Marketplace, where they’d receive a subsidy in the form of the premium tax credit. So the IRS stated that there’d be a $100 per employee per day penalty for reimbursements (the IRS waived the penalty only through June 30, 2015).

Do you have the support you need to manage your small business bookkeeping? Schedule a 30-minute appointment to speak with a local small business adviser.