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Compensation & Benefits

OK to take your time probing misconduct–that won’t affect unemployment claim

10/27/2012
Good news for employers that hold off on firing an employee for an act that would otherwise be willful misconduct, making the employee ineligible for unemployment compensation benefits. As long as you can explain why you delayed actually terminating the employee, she won’t receive unemployment benefits.

Severance pay: Is it FICA taxable or not?

10/26/2012
A federal appeals court has ruled that a bankrupt company’s severance payments qualified as FICA-free supplemental unemployment benefits—also known as SUB pay. Therefore, the court concluded, the company’s $1 million FICA refund claim was proper.

Be prepared for questions about taxes due on some benefits

10/24/2012
It’s easy for benefits professionals to fall in love with nontraditional benefits—perks other than leave, health insurance and retirement benefits—because they’re generally cheap and build loads of employee good will. However, many so-called lifestyle benefits are taxable—much to the chagrin of employees.

Must we provide benefits during leave?

10/22/2012
Q. Are we required to continue to offer our employees benefits while they are out on leave?

U.S. DOL launches probe of Southland garment industry

10/22/2012

The DOL’s Wage and Hour Division (WHD) has begun a multiyear enforcement initiative that could result in sanctions against Los Angeles and Orange County employers in the garment industry. According to the WHD, the garment industry consistently violates federal wage-and-hour laws.

1099 this! And this! And this, too!

10/22/2012
The W-2 year-end process is burdensome enough. The last thing you need to worry about is back-up withholding from payments made to independent contractors and filing Form 1099-MISC. Here’s what you need to know for the 2012 filing season.

Court: Elmhurst pumping firm drained workers’ 401(k) funds

10/18/2012
A federal court has ordered the owner of Elmhurst-based ABD Tank & Pump Co. to repay $2.7 million that was illegally skimmed from the company’s 401(k) plan.

Benefits questions can trigger ERISA suit

10/18/2012
ERISA allows employees to sue if they believe they suffered retaliation for giving information or testifying in an ERISA proceeding. Until now, employers assumed that an employee had to at least make a formal complaint to the DOL before he could sue for retaliation. That’s no longer true.

Family health premiums rose 4% to $15,745 in 2012

10/17/2012
Annual premiums for employer-sponsored family health coverage reached $15,745 this year, up 4% from last year, with workers on average paying $4,316 toward the cost of their coverage, according to the Kaiser Family Foundation’s 2012 Employer Health Benefits Survey.

FICA wage base increases to $113,700 for 2013

10/16/2012
The Social Security Administration has announced that the 2013 taxable wage base for the Social Security portion of FICA increases to $113,700. That’s a 3.2% hike over the 2012 wage base of $110,100.