Tag Archives: IRS

New Excise Tax Reporting Obligation For Tax-Exempt Entities

Tax
Attention tax-exempt entity employers: Starting with tax filings this year (for your taxable year that began in 2018), you will need to make a special report to the IRS and pay an excise tax if you provided certain current or former highly compensated employees more than $1 million in compensation or paid part of a … Continue reading this entry

Under Developing IRS Guidance (Not Final), an Employer Would Be Able to Fully Satisfy ACA’s Employer Mandate Without Maintaining Group Health Plan

ACA
Takeaway Message: A recent IRS notice provides a future path for employers to avoid ACA employer mandate penalties by reimbursing employees for a portion of the cost of individual insurance coverage through an employer-sponsored health reimbursement arrangement (HRA). While the notice is not binding and at this stage is essentially a discussion of relevant issues, it … Continue reading this entry

Proposed Hardship Withdrawal Regulations Provide Useful Guidance

While not exactly a Thanksgiving “miracle,” many retirement plan sponsors were no doubt thankful for the IRS’ recent issuance of proposed regulations (the “Proposed Regs”) addressing changes to the Code §401(k) and 403(b) plan hardship withdrawal rules enacted as part of the Bipartisan Budget Act of 2018 (the “Act”). The Proposed Regs answer several questions … Continue reading this entry

A New Way to Use Your 401(k) Plan to Attract and Retain Recent Graduates

401(k)
According to a recent report, the average student loan debt for a Class of 2016 graduate is $37,172. As recent graduates enter the work force, they often choose not to contribute to their employers’ 401(k) plans and lose out on corresponding employer match because they prefer to focus on paying off their student loans or … Continue reading this entry

An Annual Retirement Plan “Check-Up” May be Just What the Doctor Ordered!

Taxes
February is Heart Health Month, which always reminds me to schedule my annual doctor checkup. This got me thinking that the need for ongoing “checkups” and maintenance applies not just to our health, but to our homes, cars, and even to your company’s retirement plans!  That’s right—if you work with your employer’s tax-qualified retirement plans, … Continue reading this entry

Watch Your Mail: IRS Begins Collection of Employer Mandate Penalties

ACA
It’s official. The IRS has finally begun the process of collecting penalties under the Affordable Care Act’s (ACA) employer shared responsibility provisions, better known as the employer mandate.  The IRS has started mailing out letters to employers that potentially owe an employer shared responsibility payment (ESRP) for the 2015 calendar year.  These letters follow the … Continue reading this entry

Will the Jig Be Up for the Gig Economy?

Employers who rely heavily on independent contractors or temporary workers should take note: “Gig” economy companies are now a priority of the U.S. Equal Employment Opportunity Commission (EEOC). The EEOC recently approved its Strategic Enforcement Plan (SEP) for fiscal years 2017 –2021, updating and identifying areas of priority for the agency. In particular, the EEOC … Continue reading this entry

Affordable Care Act Reporting is Here (But May be a Little Late…)

Obamacare
The Affordable Care Act requires “applicable large employers” (generally, employers with 50 or more full-time employees and full-time employee equivalents) to provide individual statements to their full-time employees and to report to the IRS certain information about their employer-sponsored health coverage. This rule is first effective with respect to coverage offered in 2015. Employers will want … Continue reading this entry

Don’t Forget to Amend Cafeteria Plan for New Permitted Election Change Events

EEOC
In 2014, the Internal Revenue Service (IRS) expanded the events that would allow employees to drop their health plan coverage under their employer’s cafeteria plan. As a reminder, the general rule is that once an employee enrolls in his or her employer’s group health plan through a cafeteria plan – which is what allows the … Continue reading this entry

Automatic Tipping: Impact of IRS Rules Change on the Hospitality Industry

By Jessica Glatzer Mason and Tax Partner Michael J. Donohue In 2014, restaurants and other employers in the hospitality industry will be subject to new IRS reporting and withholding rules relating to automatic tips charged to large groups of patrons. Background. Employees are required to report cash “tips” of $20 or more to their employer … Continue reading this entry