Federal legislation passed in 1982 that raised tax revenue, instituted many provisions for managed care plans, set up Medicare payment limits, and added Medicare coverage for hospice care. It established that an employee or spouse age 65 to 69 years is entitled to the same health insurance benefits offered under the same conditions to younger employees and their spouses. TEFRA applies to employers with at least 20 full- or part-time employees. A TEFRA provision allowed states to extend Medicaid coverage to certain disabled children.

Percentage of taxable earnings, up to the maximum tax base, that is paid for the health insurance tax.

Allowed states to use the Social Security number in the administration of any tax, general public assistance, and driver’s license or motor vehicle registration laws.

Required individuals who filed tax returns to include the taxpayer identification number, usually the Social Security number, of each dependent age 5 or older. The Act defined a highly compensated or key employee as follows: (1) directly or indirectly owns more than 5% interest in the company, (2) receives compensation from the company of more than $75,000, (3) is paid more than $50,000 and was among the top 20% of employees ranked by compensation, or (4) is at any time an officer and receives compensation that was more than 150% of the Section 415 defined-contribution dollar amount.

Taxable wages and/or self-employment income under the prevailing annual maximum taxable limit.