110 STAT. 2086 PUBLIC LAW 104-191—AUG. 21, 1996 directly or through insurance, reimbursement, or otherwise, or " (II) $500,000. For purposes of the preceding sentence, all plans of which the same trust forms a part shall be treated as one plan. " (ii) SPECIAL RULE FOR EMPLOYERS REQUIRED TO PAY TAX. — If an employer is assessed a tax imposed by subsection (a) by reason of a failure with respect to a specified multiple employer health plan, the limit shall be determined under subparagraph (A) (and not under this subparagraph) and as if such plan were not a specified multiple employer health plan. "(4) WAIVER BY SECRETARY. — In the case of a failure which is due to reasonable cause and not to willful neglect, the Secretary may waive part or all of the tax imposed by subsection (a) to the extent that the payment of such tax would be excessive relative to the failure involved. " (d) TAX NOT TO APPLY TO CERTAIN INSURED SMALL EMPLOYER PLANS. — "(1) IN GENERAL.—In the case of a group health plan of a small employer which provides health insurance coverage solely through a contract with a health insurance issuer, no tax shall be imposed by this section on the employer on any failure which is solely because of the health insurance coverage offered by such issuer. " (2) SMALL EMPLOYER.— "(A) IN GENERAL.—For purposes of paragraph (1), the term 'small employer' means, with respect to a calendar year and a plan year, an employer who employed an average of at least 2 but not more than 50 employees on business days during the preceding calendar year and who employs at least 2 employees on the first day of the plan year. For purposes of the preceding sentence, all persons treated as a single employer under subsection (b), (c), (m), or (o) of section 414 shall be treated as one employer. " (B) EMPLOYERS NOT IN EXISTENCE IN PRECEDING YEAR.— In the case of an employer which was not in existence throughout the preceding calendar year, the determination of whether such employer is a small employer shall be based on the average number of employees that it is reasonably expected such employer will employ on business days in the current calendar year. "(C) PREDECESSORS. —Any reference in this paragraph to an employer shall include a reference to any predecessor of such employer. "(3) HEALTH INSURANCE COVERAGE; HEALTH INSURANCE ISSUER.—For purposes of paragraph (1), the terms *health insurance coverage' and health insurance issuer' have the respective meanings given such terms by section 9805. ^^ "(e) LL\BILITY FOR TAX. —The following shall be liable for the tax imposed by subsection (a) on a failure: "(1) Except as otherwise provided in this subsection, the employer. "(2) In the case of a multiemployer plan, the plan.
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