Not yet a Member?
HR Magazine is highlighting the next generation of HR leaders.
Is your employee handbook ready for the New Year? With SHRM’s Employee Handbook Builder get peace of mind that your handbook is up-to-date.
30+ HR education programs, including 4 NEW programs on hot topics, are available for registration.
Join us in Chicago for the latest trends and technology in talent management, and what to expect in the future.
SHRM’s Comments to the IRS: Give Employers Flexibility on the ACA’s ‘Cadillac’ Tax
The U.S. Treasury Department and the Internal Revenue Service invited the public to provide comments by May 15, 2015, on Notice 2015-16, seeking input to help Treasury and the IRS in “developing regulatory guidance regarding the excise tax on high cost employer-sponsored health coverage under the Affordable Care Act (ACA).” Under the ACA, any “excess” health care coverage (defined as any coverage that exceeds a statutory dollar limit that is revised annually) is subject to a 40% excise tax (nicknamed the “Cadillac Tax”).
The notice covers several issues related to the excise tax including how the agencies will define health care coverage, how they will determine the cost of coverage, and how they will apply the annual statutory dollar limit. In response, SHRM submitted comments on May 15 addressing specific methods suggested by the IRS to calculate costs and focused on maintaining maximum flexibility in determining the best way to value coverage. In addition, SHRM suggested that certain types of coverage not be included in the calculation—such as retiree-only plans, which tend to have higher costs, and public-sector plans that, which are often prohibited by state law from making benefit reductions.
SHRM will have additional opportunities to weigh in on the excise tax as the agencies plan to issue an additional notice focused on calculation and assessment of the excise tax and later will issue a comprehensive proposed rule for public comment.
SHRM’s Comments to the IRS: Give Employers Flexibility on the ACA’s "Cadillac Tax"
Learn Strategies to Attract and Retain Talent in Manufacturing!
Be Known as an Employer of Choice! When Work Works Awards Open August 17!
SHRM Members Call to Action: Contact Your Representative to Repeal the ACA Excise Tax
You have successfully saved this page as a bookmark.
Please confirm that you want to proceed with deleting bookmark.
You have successfully removed bookmark.
Please log in as a SHRM member before saving bookmarks.
Your session has expired. Please log in again before saving bookmarks.
Please purchase a SHRM membership before saving bookmarks.
An error has occurred
Recommended for you
CA Resources at Your Fingertips
SHRM’s HR Vendor Directory contains over 3,200 companies