Practical HR Tips, News & Advice. Updated Daily.
At a hearing in Washington, D.C., earlier this month, the Internal Revenue Service heard opposing arguments on permitting employers to provide tax-free public transit benefits through cash reimbursement rather than vouchers or passes. As we’ve reported, proposed IRS rules would make it easier for employers to set up transportation spending accounts, which let you pay […]
If you’re looking for a free or low-cost way to boost your employee benefit package, a transportation spending account may be the way to go. These programs involve some administrative burdens, but they can result in income tax savings for employees and FICA tax savings for both you and your workers. Until now, many employers […]
Rigid administrative requirements make many employers hesitate to participate in so-called 401(k) safe-harbor plans. But these programs can prove valuable because they permit you to avoid costly discrimination testing requirements by following a specific formula for contributions. Now the IRS has issued new rules that add some flexibility. Significant changes include revising the way matching […]
Employees will be able defer a maximum of $10,500 to their401(k) plans next year, rather than the $10,000 cap currently in effect, under newcost-of-living adjustments announced by the IRS that go into effect January 1. Inaddition, the maximum annual benefit that can be funded through a defined benefit planwill rise to $135,000 from $130,000, although […]
Employers who provide on-site meals to certain workers have been given a break by the federal Ninth Circuit Court of Appeal. Boyd Gaming Corp., which owns casinos in Nevada, offered workers free meals in an on-site cafeteria because it required them for security reasons to remain on the premises for their entire shift. But when […]
The federal appeals court covering California ruled several years ago that software giant Microsoft Corp. had to pay certain retroactive employee benefits to workers improperly classified as independent contractors. Now, the same court has made clear that its earlier ruling will require Microsoft to provide millions of dollars in stock-purchase rights not only to contractors, […]
Several bills pending in Congress could impact your pension plans. HR 1102 would increase the amount workers can contribute to 401(k) accounts and require faster vesting of matching employer contributions. It would also introduce new Roth 401(k)s and 403(b)s, allowing employees to contribute after-tax dollars but receive tax-free retirement benefits. Another measure, S 659, would […]
You’ve probably put a lot of effort into implementing a well-defined and nondiscriminatory application process for hiring new employees. But many employers don’t always apply the same careful planning when it comes to promotion decisions-an oversight that can be costly. In one recent case, an African-American employee successfully sued her employer for damages after being […]
The Internal Revenue Service has issued new regulations which clarify that plan administrators must provide 15 days’ written notice before the effective date of retirement plan amendments which result in a significant reduction in future benefit accrual. The rules apply to both defined benefit and money purchase plans. If some plan participants don’t receive notice […]
After a 13-year wait, the Internal Revenue Service has just released its comprehensive regulations covering COBRA health benefits continuation coverage. The new regulations-which are a complex mix of final and so-called proposed rules-clarify several gray areas of the law but don’t change the basic COBRA mandates, including the detailed notice requirements. Even though the rules […]