On December 18, President Obama signed the Consolidated Appropriations Act, 2016 which delayed the pending “Cadillac Tax” by two years. This means the tax will not go into effect until at least 2020. In addition, the Act made the tax deductible. The Cadillac Tax, which is a provision of the Affordable Care Act, will impose a 40% excise tax on excess benefits provided to an employee.
For additional information relating to the Cadillac Tax please see our earlier blog.