Get ready for the "Cadillac"
tax
The 2010 Affordable Care Act added a 40% excise tax on high-cost employer-sponsored
health insurance (sometimes called "Cadillac" plans). "High-cost"
means plans with an annual cost of more than $10,200 for an individual and
$27,500 for a family. Beginning in 2018, the tax applies to the amount above
that limit. The tax is assessed annually, and is permanent, nondeductible, and
applicable to many types of health coverage.
Because of its potentially
broad impact, you'll want to start reviewing the health insurance coverage you
offer to employees to learn how your business will be affected.
The IRS is just beginning to
issue guidance. We'll keep you informed as information is released.
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