IRS Rules Against Pre-Tax Payments for Individual Health Premiums

Have you hired someone and agreed to make their COBRA payments?  Are you paying for an employee's premiums to purchase health insurance on the Exchange?

If you write the check directly to the health plan or COBRA administrator or put the dollars in an employee's check without deducting taxes, according to articles by Accounting Today and the Society for Human Resource Management, you may be in violation of IRS rules which they clarified on May 13, 2014.

Please check with your CPA for what is appropriate for your organization.