Affordable Care Act (ACA)
Individual
Mandate Repealed
: This may eventually affect certain reporting by employers, but the employer mandate was not repealed and large employers must continue to comply with this portion of the ACA. The first “pay or play” penalty notices have just been issued by the IRS.
Dependent Care FSA, Adoption Assistance and Qualified Education Assistance Programs
all survived in their current form. Although the initial House bill eliminated these tax-free benefits, they remain intact as part of the new tax law.
Tax Credit for Paid Family Leave:
There will be an employer tax credit for federally-required paid family and medical leave equal to a sliding scale of the employee’s wages (12.5%-25%). This does not apply to family leave required by state or local governments.
Employer-Provided Commuter Benefits:
No longer deductible by employers.
Employee Achievement Awards:
No longer eligible for tax-free treatment.
