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"Wilkins Miller has been our accounting firm since the formation of Project Design Group, Inc. (PDG) in 2003. Wilkins Miller was recommended to us by another company. We were told that they were easy to work with and would provide the accounting advice that we would need as a start-up company. I can say without a doubt that we have not been disappointed. We not only use them for PDG's tax preparations, but we consult with them throughout the year for tax planning, business advice, payroll questions, and many other accounting related issues. If we have a question or need, someone is always available for us, and we are always provided with good, solid professional advice. Page Stalcup has even returned my phone call while on vacation which speaks volumes for Wilkins Miller's commitment to their customers. Part of the success of PDG is directly attributable to the relationship and advice received from Page Stalcup and Wilkins Miller over the past nine years. PDG doesn't consider Wilkins Miller the typical client/customer type relationship. We think of Wilkins Miller as a partner especially in the case of Page Stalcup, a friend."

Wes Gerhardt & Chuck Knight
Project Design Group, Inc.
Premium Reimbursement Arrangements

Premium reimbursement arrangements have been a common practice of small employers wanting to assist their employees with the cost of health insurance but not wanting to be burdened with the administration of a group health insurance plan.  Under these arrangements an employer would reimburse an employee for all or part of their individual health care plan.

However, these arrangements are not consistent with market reform rules now imposed by the Patient Protection and Affordable Care Act ("ACA”) and as a result, the small employer (two or more employees) may be subject to a $100 per day per employee excise tax for maintaining such an arrangement.

Employers who are paying or reimbursing employees (whether pre-tax or after tax) for individual health coverage (i.e., not part of an employer’s group health insurance plan) should stop doing so by June 30, 2015.

In lieu of reimbursing or paying the employees individual plan premiums, employers should consider either (a) increasing the employee’s wages by an amount that would allow them to pay for their own coverage (but the "raise” may not be conditioned on maintaining coverage) or (b) consider a group health insurance plan (it may be possible to set up such a plan through a SHOP exchange) possibly in combination with a Section 125 cafeteria plan.

Note S Corporation’s may continue to reimburse 2% or greater shareholders for their individual plan premiums through December 31, 2015.  Further guidance for these 2% shareholder arrangements is expected for 2016 and subsequent years.

Please let us know if you have any questions or if we can be of any help if you believe you are impacted by this change.