Republicans in Washington have proposed a border adjustment tax (BAT), reportedly as high as 20%, on all goods or services, including automobiles and auto parts, coming into the United States from all nations, even those with which we have existing trade agreements. The BAT is crucial to the whole Republican tax proposal, and would pay for many of its proposed corporate tax cuts.

The new tax would be devastating to both dealers and manufacturers, and not just international nameplates. Even the most American-made vehicle sold in the U.S. would be subject to a significant price increase because auto parts, many of which are made overseas, will be subject to the BAT.

Opponents say consumers would ultimately foot the bill for the new tax in the form of higher prices on vehicles. The increase in vehicle prices will force many consumers out of the market for a new vehicle and, as a result, vehicle demand will drop.

The Internal Revenue Service (IRS) recently issued an updated set of   Q&A responses  detailing how employers should comply with reporting required under the Patient Protection and Affordable Care Act (ACA). Large employers (as well as employers of any size that sponsor self-insured coverage) are required to issue Form 1095 statements to individuals by  March 2, 2017 , and must file a transmittal (Form 1094) together with copies of all 1095 forms by  February 28, 2017  (filing on paper) or  March 31, 2017  (filing electronically).

The updated Q&As emphasize that the IRS will begin sending notifications in early 2017 of potential employer penalties associated with the 2015 calendar year. Notifications for the 2016 calendar year will be sent later in 2017. Employers will have an opportunity to respond before penalties are assessed or a notice and demand for payment is made.

The Q&A addresses common questions from employers about how to report information on the coverage offered to employees. The information in the updated Q&A does not differ from existing guidance, but it does provide clarity on how to handle certain reporting situations, such as employees who waive coverage, and insurance offers to retired employees. 

American Fidelity provides in-depth information on a variety of healthcare topics at hcreducation.com

• New Hires and Terminations
• Use of Safe Harbors
• COBRA Continuation Coverage
• Post-Employment Coverage
• Reporting Waivers of Coverage

Cadillac recently announced it is modifying portions of the Pinnacle Dealer-Incentive Program that starts in April. The changes will allow retailers to receive payments sooner and give them the ability to earn partial bonuses, even if they fall short of monthly sales targets. The company is also relaxing some of the standards it plans to make dealers meet, and will create an appeals process for those it claims are not in compliance with the Program's requirements. 

The changes announced at this time don't necessarily wipe away dealer's concerns or resolve significant legal issues, but it may make the program less objectionable to Cadillac dealers everywhere. 

Cadillac management has announced sales targets, and the bonuses for meeting them, will remain as originally planned, but dealers will now be able to earn partial bonuses when achieving at least 85% of their sales target. In addition, Cadillac executives did not rule out the possibility of additional tweaks to the program before it takes effect April 1, 2017. 

The new incentive program has raised concerns from many Cadillac dealers since it was announced about a year ago. Dealers are pleased to see the company's responsiveness to negative feedback, but still have serious concerns about the program.