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2018 Tax on "Cadillac" plans...?
Does this apply only if the employer pays for 100% of the premium?
If the employee pays 20% does the tax still apply? What is owed in either case?
If the employer pays for 100% of the premium, is that counted as income for tax purposes?
This isn't an invitation for comments - don't answer if you don't know.
2 Answers
- Anonymous1 decade agoFavorite Answer
Employer provided Plans wherein the premiums are greater than $10,000.00 per year (paid by the employer) will be taxed 40% of the cost above and beyond $10,000.00.
If your policy is $15,000.00 per year you would be taxed 40% of $5,000.00 or an additional $2,000.00.
in other words.
The limit to the tax free additional income in the form of health care benefit is 10k.
Anything above 10k is taxed 40%.
Whether you can pay the overage yourself without penalty is unclear.
- 7 years ago
i.e. if you are self employed you will get hit with this tax if you try to write off a more than 10k in health care premiums?
