With all the turmoil of the potential $100 a day penalty (per employee) for group insurance not being in compliance with the Affordable Care Act, the IRS issued   Notice 2015-17   to try and address these issues.  At least until June 30, this penalty will not be imposed for businesses with less than 50 full time employees.  See this article in Forbes by Tony Nitti for some clarification on the Notice (we definitely need some):

http://www.forbes.com/sites/anthonynitti/2015/02/18/in-last-minute-move-irs-spares-small-employers-big-obamacare-penalties-for-2014/

It is interesting that at this point it appears that if you have a more-than-2% shareholder getting a reimbursement for family coverage on an individual plan and other family members (spouse and dependents) are employees of the corporation, they are considered one employee being covered, so it is not subject to the ACA (at this time) (see the answer to question 2 on page 3 of the Notice). That appears to mean that an S-Corporation with family members as employees only can still reimburse their health insurance (until the IRS issues further guidance on this.)

    For financial,  accounting and tax musings,