On January 22, 2018, President Trump signed into law H.R. 195 (hereinafter referred to as the "2018 Budget Deal") which ended the federal government shutdown and funds the federal government through February 8, 2018. In addition, the 2018 Budget Deal included a six-year funding extension to the Children's Health Insurance Program. The 2018 Budget Deal also contains a two year delay to the effective dates of the "Cadillac Tax", the medical device excise tax, and an annual fee on health insurance providers. This blog will review the two year delays to the above-referenced taxes and ...
Beginning in 2018, certain employers will be liable for a new 40% federal excise tax on the value of excess benefits provided through their health plans. Health plans providing high cost benefits are referred as "Cadillac" plans, and the new federal excise tax on high cost plans has come to be known as the "Cadillac tax".
Under the Cadillac tax, if the aggregate cost of "applicable employer-sponsored coverage" provided to an employee exceeds a statutory dollar limit (revised annually), the excess is subject to a 40% excise tax.
In a prior post, I reviewed who is liable for and who must ...
Beginning in 2018, certain employers will be liable for a new 40% federal excise tax on the value of excessive benefits provided through their health plans. Health plans providing high cost benefits are referred to as "Cadillac" plans, and the new federal excise tax on high cost plans has come to be known as the "Cadillac tax".
- Background.
The Cadillac tax (found in Section 4980I of the Internal Revenue Code - the "Code") was adopted as part of the 2010 Patient Protection and Affordable Care Act. The Cadillac tax is intended to provide employers with an incentive to restrain the growth of ...