Adam Solander Quoted in “IRS Issues ‘First Taste’ of Cadillac Tax Implementation”

Employee Benefit News

Adam C. Solander, a Member of the Firm in the Health Care and Life Sciences practice, in the firm’s Washington, DC, office, was quoted in an Employee Benefit News article titled “IRS Issues ‘First Taste’ of Cadillac Tax Implementation,” by Richard Stolz.

Following is an excerpt:

“This is our first taste of the nuts and bolts of implementing the tax,” says Adam Solander, a member of the Epstein, Becker & Green law firm. “The Cadillac tax could get even more expensive,” he warned, for in scenarios in which the TPA winds up being the taxable entity.

That’s because in reimbursing TPAs for the excise tax liability they might sustain on the employer’s behalf, the reimbursement itself would be taxable income to the TPA, subjecting the TPA to additional tax. Thus employers will need to “gross up” the reimbursement amount to offset that incremental tax liability, Solander says.