Excise Tax on 'Cadillac' Health Plans

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Excise Tax on 'Cadillac' Health Plans

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Is your company at risk of incurring the 2018 Excise Tax? If the sum total of all employer and employee pre-tax health coverage premiums exceed a specific amount, an employer can be subject to a 40% Excise Tax on the amount of excess benefits. The tax is calculated on a per employee basis, but the employer doesn't have any direct means to pass the Excise Tax back to employees. This could cost an unsuspecting employer millions.



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