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Affordable Care Act News Update: Cadillac Tax Delayed for Two Years

Affordable Care Act News Update: Cadillac Tax Delayed Until 2020 --- Compliance Bulletin via CBG BenefitsOn December 18th, 2015, President Barack Obama signed a federal budget bill for 2016 into law which makes significant changes to some of the tax provisions under the Affordable Care Act (ACA).

For employers, the most noticeable impact is a delay on implementing the ACA’s “Cadillac Tax” until 2020.

Under the ACA, there will be a 40 percent excise tax on high-cost group health coverage. This tax, which had previously been delayed until 2018, will be delayed an additional two years. Also, the federal budget bill also removed a provision prohibiting the Cadillac tax from being deducted as a business expense.

We hope that you find this brief compliance update helpful. If you have any questions, please contact the CBG Benefits team at 781-759-1222 or via email at info@CBGBenefits.com.

We encourage all clients to log-in to the CBGconnect portal to download our detailed Compliance Bulletin on this topic, entitled “2016 Federal Budget Delays ACA’s Cadillac Tax & Suspends Two Other Taxes.”

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Posted in: Benefits and Insurance, Human Resources, Legislation

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