Phase 2: Wave 1: seniors, near-seniors, and children · Step 2.3

Enforce maintenance of compensation

Years 1–4 (requirement lasts 3 years after each worker's wave) · DOL Wage & Hour Division; employers; unionsDiscuss this step

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Task 2.3.4 of 5

Worker-paid premiums end; paycheck deductions stop, raising take-home pay.

Who does it

Employers

When

Each wave

Trade-off

Ending paycheck deductions raises take-home pay but also raises taxable income.

Part of: Enforce maintenance of compensation

Employers that paid health premiums must convert their savings into wages or other compensation. In steady state employers paid $1.05T in premiums (private, federal, state & local) and owe $873.4B in the new tax; 85% of the difference is assumed to reach paychecks.

This step changes 1 existing laws, programs, or institutions. See the list.