Does your broker’s plan have you ready for the 2020 tax?
Have you taken actions to avoid paying the Cadillac Tax on your employee health insurance program? Starting in 2020, the Affordable Care Act (ACA) imposes a 40% excise tax on any employer-sponsored health care coverage that exceeds annual indexed dollar limits.
The Cadillac Tax was scheduled to start in 2016; nonetheless, indexing of it continues while the tax collection is delayed. In other words, the dollar limits in effect collected in 2020 will reflect indexing amounts had the delay not been enacted.
If your broker didn’t have you ready for the tax in 2016, are you confident you’ll be ready in 2020? Regardless, how are you and your broker planning for a healthier workforce and lower insurance costs?
