Cadillac Tax Calculation
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For tax years beginning in 2018, PPACA imposes a 40 percent excise tax on high-cost group health coverage. This tax, also known as the "Cadillac Tax," is intended to encourage companies to choose lower-cost health plans for their employees. Given the high cost of health care and rich benefits associated with some employers, a large percentage will be subject to the Cadillac tax in 2018 with no change in benefits strategy. Sterling can run the Cadillac Tax Calculation to determine if a benefits strategy change is needed now to avoid this tax expense in the future.