Insights: Article

Certain Affordable Care Act Taxes are Suspended

January 25, 2018

H.R. 195, the legislative document signed into law on January 22, now designated as P.L. 115-12, used to end the government shutdown and fund the government through February 8, carried with it some tax legislation. The legislation suspended certain Affordable Care Act (ACA) tax provisions, including the “Cadillac tax,” the medical device excise tax and the annual fee on health insurance providers. 

Cadillac Tax
The Cadillac tax, which is related to high-dollar health insurance plans, was scheduled to apply for tax years beginning after December 31, 2019, after previous legislation had suspended the tax. But the new legislation delays the earlier suspensions for another two years until tax years beginning after December 31, 2021.

Medical Device Excise Tax
The medical device excise tax, a tax on the sale of medical devices imposed on manufacturers, producers and importers, has once again been suspended and will now apply to medical device sales made after December 31, 2019. In addition, the suspension also made the law change retroactive back to January 1, 2018. This move eliminated any excise tax that would otherwise have been due for sales this year.

Annual Fee on Health Insurance Providers
The Annual Fee on Health Insurance Providers, which had previously been suspended through 2017, is now scheduled to be applied in tax years beginning after December 31, 2019.

Contact your Eide Bailly professional for additional information on these new suspensions or on any other area of taxation.

Latest Insights

July 19, 2018
Article
While it’s great to watch your team grow, hiring new employees can be a frustrating and grueling process.
July 19, 2018
Article
Often, human resources (HR) is over looked, but we’re here to tell you it’s an essential component of any organization and critically important to get right.
July 13, 2018
Article
Here are some idea for giving your new hire a smooth start into your business and alleviating stress for you.
July 13, 2018
Article
The impact of the recent SCOTUS Wayfair decision will continue to have a ripple effect on businesses and state sales tax compliance.
July 9, 2018
Article
The revenue cycle is a complex system and we have historically given much attention to the front-end and back-end while oftentimes leaving the middle functions of the cycle neglected.
July 3, 2018
Article
FASB Accounting Standards Codification Topic 606, Revenue from Contracts with Customers, provides a 5-step framework for determining revenue recognition.
July 2, 2018
Article
As part of the Tax Reform Act of 1986, the “Kiddie tax,” a taxing regime designed to make the transfer of income items by wealthy parents to lower tax paying children less attractive, was implemented.
July 2, 2018
Article
When it comes to your employees, you likely conducted interviews on them when you first hired them.
July 2, 2018
Article
Nearly ten years after the release of the initial exposure draft, FASB issued ASU 2016-02, Leases - The standard may have been issued, but the conversation about this re-write of legacy guidance has not slowed.