20 Dec Congress Passes Tax Reform Bill, Repeals (ACA) Individual Mandate
On Dec. 20, 2017, the tax reform bill, called the Tax Cuts and Jobs Act, passed both the U.S. Senate and the U.S. House of Representatives. The bill is now expected to be signed into law by President Trump by the end of the day.
This tax reform bill will make significant changes to the federal tax code, and will have a substantial impact on businesses. For example, effective in 2018, the bill reduces the corporate tax rate to 21 percent (down from 35 percent), and establishes a new 20 percent tax deduction for businesses conducted as sole proprietorships, partnerships, LLCs and S corporations. It also repeals the individual mandate tax penalty imposed under the Affordable Care Act (ACA), beginning in 2019. Employers should become familiar with the tax reform bill and its potential impact on their businesses.
Download our complimentary News Brief for a complete overview of the tax reform bill and its potential impact on employers.
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