ACA question

We are a small business, fewer than 10 full time equivalent employees incorporated in New York with employees who want insurance in NY and New Mexico (we also have employees in CT and MD, though they are covered elsewhere). My understanding is that we are not obligated to provide health insurance under the ACA. We would like to support our employees however, by paying $300 a month towards the purchase of their own plan through the private market (is that the same as the ?exchange??). Can this $300 be pre-tax since we are not doing so as an obligation of the ACA?

Maybe this isn't the right place, so please forgive me if I've posted in error. I will clarify with the Chief Justice next chance I get as to whether the ACA rules are tax rules or not :)

This would be the wrong place for your question, even though there are tax considerations. That said, here's what I know:

The Dept. of Labor issued a Technical Release (TR) that addresses how the market reforms in the ACA impact the ability of employers to pay for "individual" health insurance policies. Below you will find a link to the release. Also below is an explanation of the TR in plain english from the Kapnick Insurance Group. Effectively, it says that starting in

2014 it is practically impossible for an employer to do what you want to do simply. As far as I can tell, the amendments by the ACA to the Public Health Services Act relative to market reforms effects all employers.

The Treasury Dept. issued its own guidance that mimics the DOL TR. The link to that is also below. Any time you see reference to Revenue Ruling

61-146, that's the ruling that allowed a simple solution for you... i.e., give the employee $300 month to pay for health insurance. All you needed was to keep proof that the money was spent on health insurance and the employee maintained coverage.

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