The 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...