High-tech employers have historically provided rich benefits and other perks to their employees. The ACA is playing havoc with these strategies. On the one hand, the ACA upped the ante for employer-sponsored health coverage with no lifetime limits, no annual maximums, 100% coverage for preventive care, and so on. On the other hand, in 2018 the excise tax will go into effect which will levy a 40% tax on the value of health care benefits over thresholds set by the government. Currently, the average actuarial value of an employer-sponsored medical plan when only one option is offered is 79%. With the ACA setting the minimum actuarial value at just 60%, many employers are now moving in the direction of lower-value options. This pressure has already driven lots of internal discussion around other ways to attract and retain talent, and now -- according to an article in The Wall Street Journal -- it looks like the IRS is starting to pay attention to free food in the workplace. Fortunately, there are other ways for employers to command “employer of choice” status. See my post “Looking for Sweeteners” for some fresh ideas.
Go to full article: online.wsj.com