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As many of you probably know, the Cadillac Tax is set up to hit the state in 2018. Whether this will come to fruition or not, we really don’t know. However, what we do know is employers, counties and unions form California to the Carolinas are already taking steps to prepare for this potential blow.
In a nutshell, the Cadillac Tax will cost an additional 40% on benefits that are over the government thresholds. Those limits are $10,200 for individuals and $27,000 for families. In other words, if you employee benefits previously cost $15,000 a year, there will be a 40% tax on the overage of $4,800 totaling $1,920 in additional taxes. A recent survey by Tower Watson states that 48% of employer groups are likely to trigger the tax in 2018, while 82% could cross the threshold by 2023.
“Knowledge is power.” C&A can provide guidance and expertise to help you avoid any and all costs associated with the Cadillac Tax. Call us today 614.389.5755.