05.12.2017 09.28 CST
The Senate tax act (H.R. 1) would make significant changes to individual and corporate tax rules. The bill leaves employment-related plans (largely) unscathed, but still has a number of provisions that will affect these plans. Most notably, the bill eliminates the individual mandate under ACA and adds a temporary tax credit for paid family and medical leave programs. And, although there are few direct changes to comp and benefits rules, the larger changes to the tax code are likely to impact employer-sponsored plans over the longer term.
The Senate Tax Bill: A Benefits Perspective
This bill does not make dramatic changes to rules governing employer-sponsored plans. So, for now, the HR community can finish enter 2018 without the distraction that more dramatic changes would have been generated. Photo credit Ted Hartz, 2017
The Senate has now passed its version of a revamp to the tax code (H.R. 1). The legislation makes significant changes to many provisions of the code, including changes to corporate and individual taxation. A number of compensation and benefits changes, including elimination of the ACA’s individual mandate, are included in the bill. However, the core rules governing employer-sponsored retirement and healthcare benefits are unchanged.
30.03.2017 11.02 CDT
The drive to reduce corporate tax rates will send Congress looking for new sources of revenue. Employee benefit plans…look out.
Tax Reform: More Challenges for Employee Benefit Plans
Tax reform regarding employee benefit plans may come under attack by legislators.
Tax breaks for employee benefit plans represent a significant loss of revenue for the federal government. In the movement to reduce corporate taxes – and offset reduced federal revenue from those tax cuts - employee benefit plans represent an attractive target for legislators.