Kutak Rock attorney Shira McKinlay was recently featured in the article, “How Small Biz Owners Might be Breaking Tax Code Under ACA,” in Law Week Colorado’s March 30, 2015 edition.

The article explains how the Affordable Care Act (ACA) policy barring small businesses from reimbursing employees for individual health insurance plans will force business owners to pay significant penalties. The article states a large number of businesses are unaware of this change, yet, following an enforcement delay for certain small employers, the penalties for noncompliance are $100 per-person, per day excise tax. “That’s a huge penalty for any size employer, but if you’ve got 10 employees doing this, that’s $365,000 a year,” McKinlay said. To avoid violation of the policy, McKinlay advises that employers may increase after-tax pay, as long as such increase is not tied to the purchase of health coverage, so employees can afford individual coverage. She also explains employers can purchase a group health plan.

McKinlay is an of counsel attorney in the Denver office of Kutak Rock. She has extensive employee benefits experience, focusing on health and welfare benefits. McKinlay has been active in helping companies comply with, and strategize for, changes brought on by the ACA.