Is there a Penalty For Reimbursing Employees?
Is there a penalty to an employer (offered affordable health insurance to its less than 30 FTE employees) who reimburse an employee for the employee’s cost of health insurance acquired else where?
Answer
As an employer with less than 50 FTE you can make any arrangement you want with your employee, but for tax deductions, you'll have to follow certain IRS rules for employer contributions.