JGS Insurance Compliance Alert - House and Senate Pass Tax Reform Bill

16 October 2017 By Barry E. Fields

December 20, 2017 - A few hours ago both the U.S. Senate and the U. S. House of Representatives passed the tax reform bill called the Tax Cuts and Jobs Act.  The bill is expected to be signed into law by President Trump by the end of the day today.
While the bill includes many aspects that will have substantial impact on businesses, the tax reform bill does not affect the following tax provisions:

  *   Tax treatment of employer-sponsored health plans; and

  *   The ACA’s Cadillac tax on high-cost employer-sponsored health coverage.

The bill does repeal the individual mandate tax penalty, but this provision is not effective until 2019.  Employees cannot leave company sponsored medical plans mid-year without a qualifying life event, and this tax reform bill does not constitute a life event.  For now, it is business as usual in the employee benefits world.

Please refer to the attached news brief for additional information on what is included in the tax reform bill.  Let me know if you have any questions.

Barry E. Fields
Vice President, Employee Benefits

Cell: 908-406-7000 | Fax: 732-834-0233
101 Crawfords Corner Road, Suite 1300, Holmdel, NJ 07733

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Last modified on Wednesday, 20 December 2017 20:59

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