Payroll

August 2014: Employer’s business tax calendar

07/31/2014

This is your monthly guide to critical payroll due dates.

New COBRA notices further explain individual exchanges

07/30/2014

You can finally make the Affordable Care Act work for you. Newly proposed COBRA regulations update the model COBRA notices to expand the discussion of the individual Health Insurance Marketplace exchanges, through which COBRA-eligible employees may, instead, buy individual policies.

2015 inflation adjustments for health plans released

07/25/2014

The IRS has announced the 2015 inflation-adjusted figures for health savings accounts (HSAs) and high-deductible health plans (HDHPs).

SSA retires its letter forwarding program

07/24/2014

The SSA retired its letter forwarding program for good on May 19, 2014. The IRS retired its routine letter forwarding program in 2012. The end of these two programs may put you in a bind if you need to contact former employees about final checks or 401(k) plan distributions and you don’t have their current addresses.

California Supreme Court: Undocumented status doesn’t bar back pay

07/23/2014

The California Supreme Court has ruled that federal immigration law does not preempt a California law that extends state law protections to all workers regardless of their immigration status. However, the court held that federal law does preempt state law on the issue of liability for lost wages for any period after an employer discovers that an employee is not authorized to work in the United States.

Two IRS rulings shed light on health FSAs and HSAs

07/23/2014

Health flexible spending accounts and health savings accounts, which complement employees’ major medical coverage, are key elements of many cafeteria plans. In two legal memoranda, the IRS details how corrections to FSA reimbursements should be made and how the new FSA rollover rule impacts employees’ eligibility for HSAs.

APA Congress: Big changes ahead for 2014 W-2s

07/21/2014

The Social Security Administration’s (SSA) Mark Ruley, speaking at the American Payroll Association’s 32nd Annual Congress in May, highlighted imminent changes at the SSA that will affect your 2014 wage reporting.

Would reimbursements for paycard fees be taxable?

07/18/2014

Q: Employees who are paid with paycards may incur fees for withdrawing cash from ATMs and other services. State legislation has been proposed that would require employers to reimburse those fees. Would the reimbursements be considered taxable wages?

Taxable fringes or legitimate business expenses?

07/17/2014

Q: As a condition for an employee to travel, the company has agreed to pick up expenses he incurs to board his dogs. He’s submitted receipts along with his expense report. Are these payments acceptable business reimbursements or taxable income?

401(k) plans must recognize same-sex spouses

07/16/2014

The fallout from the U.S. Supreme Court’s 2013 U.S. v. Windsor decision continues to percolate. The IRS now says that 401(k) plans that define marriage and spouses in terms of heterosexuality must be amended to define those terms in a gender-neutral way.