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The Tax Reform Act was finally passed at the end of December 2017, and while there are mixed reviews and interpretations on who will benefit, when the new tax tables take effect in mid-February 2018 most people should see more money in the pay checks.  However, the lower tax rates were offset to reductions in certain itemized deductions for medical expenses and state and local taxes so you won’t know what your net impact will actually be until you file your 2018 tax return next year.

In the meantime, other regulatory updates have gone through in January 2018 almost unnoticed, as follows:

  • The 2.3% excise tax on medical devices implemented under the Affordable Care Act (ACA) that was to go into effect in 2108 was postponed until 2020.
  • The ACA’s Cadillac tax on high cost health plans has been delayed until 2022.
  • The ACA’s annual excise tax on health insurers was postponed until 2020.

While these were all taxes on insurers and manufacturers, they would in effect be passed on to consumers and increase premiums and other health care expenses.  Therefore, these postponements should have a positive impact on healthcare inflation for the next few years.

The current administration’s focus continues to be one of deregulation to lower the cost to do business so look for more changes to come in the rest of 2018.

For more assistance with regulatory compliance, Total Team Solutions has 30 years of experience helping our clients navigate these ever changing issues.  Contact John Morlock at 800-836-9678, ext. 5, or email at jmorlock@ttspro.com.

ABOUT TOTAL TEAM SOLUTIONS:  Total Team Solutions is a Human Resources Outsourcing company providing payroll, benefits administration and human resource advisory services to small businesses in Connecticut, New York, Massachusetts and New Jersey.  We can tailor our services to each client’s specific needs to provide the support that they need at a price they can afford; all while saving them time so they can focus their efforts on running and growing their businesses.

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