ACA Cadillac Tax Update
The ACA Cadillac Tax is a 40% excise tax on costly employer-sponsored health insurance coverage that was set to take effect in 2018 has now been pushed to 2020. Plans subject to the tax are those with benefits valued above $10,200 for single coverage and $27,500 for family coverage. These amounts will be indexed annually for inflation. The Consolidated Appropriations of 2016 not only enacted the delay in effective date for the tax but also made it tax deductible by businesses.