Most employers are aware that the health insurance mandate under the Patient Protection and Affordable Care Act (PPACA), the law known informally as Obamacare, finally kicks in next year. But a potentially more costly provision for “Cadillac plans” is just down the road. This is the term used to describe high-cost health insurance plans with top-of-the-line benefits.
Effective for 2018 and thereafter, employers will be required to pay an excise tax on a plan costing more than $10,200 for an individual or $27,500 for a family.
The excise tax is equal to 40% of the cost of premiums above these thresholds.
The Cadillac plan thresholds under Obamacare will be indexed for inflation after 2018.
- Small Business Tax Deduction Strategies No matches