Understanding the Cadillac Tax

(Health Care Reform, Regulation) Permanent link

10_27_15_CadillacThe High Cost Employer-Sponsored Health Coverage Excise Tax, more commonly referred to as the Cadillac Tax, is slated to become effective in 2018. Under this provision of the Affordable Care Act, if the total premium cost of the plan provided to an employee exceeds a specific dollar limit, which is revised annually, the excess is subject to a 40 percent excise tax. So that total premium cost is the sum of what your club pays and what the employee pays. 

Currently, the Internal Revenue Service (IRS) is developing guidance about the tax for employers and employees. Read more...

Posted by Karen Woodie at 11/10/2015 12:02:56 PM |