I have a small business with 3 employees including myself. I pay one employees health insurance premium directly to the insurance company. This is a policy that she had before she worked for me and I agreed to pay when she came aboard. Do I have to put the premiums on her W-2? Do I have to file a 1095 (A, B, or C?)
You are navigating a minefield here, and because of the continually changing laws for this type of thing, you should probably tie this in with a third-party organization that specializes in healthcare plans for small businesses.
Is this a corporation? Or are you self employed with a business on Schedule C?
Is the employee an "officer" of the business?
Is the employee a shareholder of the business (or related to a shareholder)? If so, what percentage does she (or the relative) own?
Is she the highest paid employee?
The premiums can sometimes be a tax-free benefit, but you will run into problems with both the affordable care act and the IRS if you don't treat employees equally. Hence the detail questions above.
And the fine for non-compliance with the ACA is $100 PER DAY PER EMPLOYEE counting from the date you discover the error.
This is an S-Corp. Employee is not an officer or shareholder or related. We only have two employees besides me. The other employee has insurance through his wife. We have offered the same to the other employee.
You are navigating a minefield here, and because of the continually changing laws for this type of thing, you should probably tie this in with a third-party organization that specializes in healthcare plans for small businesses.