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HR News Alerts

New Tax Law Eliminates Tax Breaks for Several Fringe Benefits

Posted on December 19, 2017 07:38 PM

President Trump has signed into law the Tax Cuts and Jobs Act, which, among other things, eliminates tax breaks for several fringe benefits and creates a new tax credit for employers offering paid family and medical leave.

Categories: Cafeteria Plans, Employee Benefits, Fringe Benefits

IRS Releases 2018 Inflation Adjustments for Various Tax Benefits

Posted on October 19, 2017 06:28 PM

The Internal Revenue Service (IRS) has announced a number of inflation-adjusted tax items for 2018, some of which remain unchanged. Among other items, the annual dollar limit on employee contributions to employer-sponsored health flexible spending arrangements (FSAs) increases to $2,650 (up from $2,600).

Categories: Cafeteria Plans, Employee Benefits, Fringe Benefits, HSAs, FSAs and Other Tax-Favored Accounts

IRS Releases 2017 Inflation Adjustments for Various Tax Benefits

Posted on October 26, 2016 02:08 PM

The Internal Revenue Service (IRS) has announced a number of inflation-adjusted tax items for 2017, some of which remain unchanged. Among other items, the annual dollar limit on employee contributions to employer-sponsored health flexible spending arrangements (FSAs) rises to $2,600 (up from $2,550 in 2016).

Categories: Cafeteria Plans, Employee Benefits, HSAs, FSAs and Other Tax-Favored Accounts

IRS Memo Clarifies Tax Treatment of Wellness Program Benefits

Posted on June 1, 2016 03:29 PM

A recent Internal Revenue Service (IRS) memorandum clarifies whether certain employer payments paid to an employee for participating in a wellness program, such as cash rewards and premium reimbursements (if the premiums were originally made by salary reduction through a cafeteria plan), are excludable from the employee's gross income.

Categories: Cafeteria Plans, Employee Benefits

New Guidance Regarding Participation by Same-Sex Spouses in Certain Employee Benefit Plans

Posted on December 17, 2013 08:45 PM

The IRS has issued a set of questions and answers, effective December 16, 2013, that amplify previous guidance in which the agency announced that same-sex couples, legally married in jurisdictions that recognize their marriages, will be treated as married for all federal tax purposes in light of the U.S. Supreme Court decision invalidating part of the federal Defense of Marriage Act (DOMA).

Categories: Cafeteria Plans, Employee Benefits, HSAs, FSAs and Other Tax-Favored Accounts

Changes to 'Use-or-Lose' Rule for Health FSAs

Posted on November 1, 2013 04:30 PM

According to new agency guidance, employers may now allow employees to carryover up to $500 of unused amounts in a health flexible spending arrangement (FSA) to use in the following plan year.

Categories: Cafeteria Plans, HSAs, FSAs and Other Tax-Favored Accounts

Guidance Issued Regarding Section 125 Requirements Under State Law

Posted on March 3, 2013 05:00 AM

In light of incompatible federal guidance, Massachusetts intends to repeal its requirement that employers with 11 or more full-time equivalent employees offer Section 125 plans as a way for non-benefits eligible employees to purchase health insurance using pre-tax income (along with related requirements).

Categories: Cafeteria Plans, State Employment Laws