Are your employees enrolled in a health care plan? Here’s something to consider in your planning: Late in 2015, Congress delayed implementation of a significant tax on high-cost employer-sponsored insurance plans — called the “Cadillac tax” — from 2018 to 2020. Under this rule, when the value of a health plan is more than $10,200 for individual coverage and $27,500 for family coverage, the plans face a 40% tax on the excess amount, but businesses now won’t have to face that concern for a couple more years. Even with this delay, it’s worthwhile keeping this potential tax on your radar screen.
Also, if your company was not subject to the Affordable Care Act for 2015, be aware that the thresholds changed dramatically for 2016. An organization becomes an Applicable Large Employer (ALE) when it employs an average of 50 or more full-time and full-time-equivalent employees on business days during the calendar year. ALEs must provide certain employees with health insurance that meets specific standards, or face significant penalties. If you have any questions, please contact your Linkenheimer CPA.