For taxable years beginning in 2018, the Affordable Care Act (ACA) imposes a 40 percent excise tax on high-cost group health coverage.
This tax, also known as the “Cadillac tax,” is intended to encourage companies to choose lower-cost health plans for their employees.
On July 30, 2015, the Internal Revenue Service (IRS) issued Notice 2015-52 to continue the process of developing guidance to implement the Cadillac tax. This notice supplements Notice 2015-16, issued on Feb. 23, 2015.
Notice 2015-52 addresses additional issues under the Cadillac tax.
For additional details, please click below to read our Health Care Reform bulletin: