On June 28, 2012, the United States Supreme Court released its much-anticipated ruling on the Patient Protection and Affordable Care Act (ACA) and upheld most parts of the 2010 healthcare law. Included in the ACA are two new Medicare taxes on high-income individuals that go into effect as of January 1, 2013.
The first is a 0.9% increase in the withholding rate on wages above specific thresholds, and the second is a 3.8% Medicare tax applied to unearned income, which might in certain instances affect relocation home sales. The new Medicare taxes have generated a number of questions concerning their impact on clients, their transferring employees, and the relocation process. Pete Scott, tax counsel for Worldwide ERC, provides good detail and direction on the impact these new Medicare taxes will have on the relocation process in his entry to the organization’s Mobility LawBlog™.
If you have further questions on this topic or others that may affect your relocation program, please contact your account executive.