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Cadillac Tax Would Have a Deep Impact on Employers

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Cadillac Tax Would Have a Deep Impact on Employers

BusinessWest on March 8, 2016 in Banking and Financial Services

New Rules of the Road

By BOB CUMMINGS

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Although many provisions of the Affordable Care Act (ACA) have already been implemented, a few major ones are still to come. None are as far-reaching as the proposed ‘Cadillac tax’ on employer-sponsored health benefits.

Originally scheduled to take effect in 2018, the Cadillac-tax implementation was recently pushed off to 2020. If implemented, the IRS will impose a 40%, non-deductible excise tax on certain employer-sponsored health benefits that exceed a dollar threshold of $10,200 for an individual and $25,500 for a family. Health-insurance companies and self-insured plan sponsors will have to pay the tax on excess dollar amounts for benefits provided above this threshold. After 2020, the limits are to be adjusted for future changes in the consumer price index.

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Getting a Grasp on the New Health-benefits Reporting Rules

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Getting a Grasp on the New Health-benefits Reporting Rules

BusinessWest on January 12, 2016 in Banking and Financial Services

Delayed Reaction

By BOB CUMMINGS

files/content/about/Bios/RCummings_Head.jpgFor many employers, their first challenge with the Affordable Care Act (ACA) may be compliance with the new reporting requirements.

Under the ACA, the Internal Revenue Code added IRS Section 6056, which requires ‘applicable large employers’ to file information returns with the IRS and provide statements to their full-time employees about the health-insurance coverage that the employer offered. Under the terms of the ACA, an applicable large employer generally means an employer that had 50 or more full-time employees (including full-time equivalent employees) in the preceding calendar year.

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Getting a Grasp on the New Health-benefits Reporting Rules

files/content/blog/2016/BusinessWest.png

Getting a Grasp on the New Health-benefits Reporting Rules

BusinessWest on January 12, 2016 in Banking and Financial Services

Delayed Reaction

By BOB CUMMINGS

files/content/about/Bios/RCummings_Head.jpgFor many employers, their first challenge with the Affordable Care Act (ACA) may be compliance with the new reporting requirements.

Under the ACA, the Internal Revenue Code added IRS Section 6056, which requires ‘applicable large employers’ to file information returns with the IRS and provide statements to their full-time employees about the health-insurance coverage that the employer offered. Under the terms of the ACA, an applicable large employer generally means an employer that had 50 or more full-time employees (including full-time equivalent employees) in the preceding calendar year.

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