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Professional Tax Software News & Advice

IRS Offers Guidance on Tax on ‘Cadillac’ Health Plans

The Internal Revenue Service has issued guidance on the potential approaches it may take in the future on proposed regulations for the excise tax on high-cost employer-sponsored health coverage in the Affordable Care Act. The excise tax on so-called “Cadillac” health plans is scheduled to take effect in 2018 and would impose a 40 percent tax on employers who pay for overly generous and expensive health coverage in an effort to encourage them to offer more cost-effective health plans in which employees and executives share more of the costs. [More]