Thursday, January 25, 2018

Short-term Funding Bill Delays Several ACA Taxes

On 1/22/18, President Trump signed into law H.R. 195, which funds the federal government through February 8. Among other things, the bill delays the 40% excise tax on high cost employer-sponsored health coverage under IRC Sec. 4980I (commonly referred to as the "Cadillac" tax) for an additional two years. The Cadillac tax is now scheduled to apply for tax years beginning after 12/31/21. In addition, the bill further delays the 2.3% medical device excise tax under IRC Sec. 4191. The delay, which is retroactive to the beginning of 2018, is for an additional two years, meaning that the tax is scheduled to apply to sales after 12/31/19. The annual fee on health insurance providers has been suspended for one year; it is effective for 2018, but suspended for 2019. H.R. 195.

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