For tax years after 2017, a new 21 percent excise tax is imposed on compensation in excess of paid to a covered employee by an exempt organization. A 1.4 percent excise tax applies to the net investment income of private colleges and university with at least 500 students and assets of at least per student beginning with the 2018 tax year.

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The 21 percent excise tax is imposed on compensation in excess of $1,000,000 paid to a covered employee by an exempt organization. The 1.4 percent excise tax applies to the net investment income of private colleges and universities with at least 500 students and assets of at least $500,000 per student.

For Tax Years After 2017, a New 21 Percent Excise