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.
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.