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Employees who want to help victims of Hurricane Sandy through leave donation may do so without being taxed on the monetary value of the vacation days, sick days and personal leave they donate, the IRS announced Nov. 6. In a leave donation program, employees forgo vacation, sick or personal leave and return it to their […]
Employers and plan administrators have more options now in choosing a way to reimburse the expenses their employees incur for lodging, meals and incidentals during business travel. The IRS in Notice 2012-63 issued per diem rates that are an alternative to the CONUS per diem rates the U.S. General Services Administration issues. The notice also […]
Reimbursement rates for lodging, meals and incidental expenses for fiscal year 2013, which begins Oct. 1, will be frozen at FY 2012 levels, the U.S. General Services Administration announced Aug. 27. GSA is the arm of the federal government that sets travel policy for federal employees. The reimbursement rates, commonly called per diems, determine the […]
The standard industry fare level rates that employers will use to calculate the value of trips taken aboard company aircraft during the second half of 2012 were issued Aug. 14 by the U.S. Department of Transportation. The rates have increased about 4 ½ percent from those that were in effect for the first half of […]
Employers that pay advances, allowances or reimbursements to employees for work-related entertainment expenses — including taxpayers who, in turn, get reimbursed by their clients for such expenses — have until Oct. 30 to comment on a proposed regulation IRS published Aug. 1. The proposed rule clarifies who — among the employer, its client and an […]
Lawmakers on Capitol Hill have put transit parity — that is, the equalization of mass transit and qualified parking benefits under tax Code Section 132 — back in play, after watching it fail earlier in the session. The legislation would extend a temporary parity provision that expired Dec. 31, 2011, for another two years. Sen. […]
Employers that own aircraft and find the tax treatment of their use complicated did not see much relief from final regulations IRS issued Aug. 1 in T.D. 9597. The final regulations on the operation of company aircraft leave intact many of the limitations to deductions contained in regulations it issued in 2007. In the end, […]
There is some persistent confusion over what the implementation of the health reform law means for health flexible spending accounts and health savings accounts. The short answer is that with one exception, employers and plan administrators must follow different steps for health FSAs and HSAs. Understanding these steps is crucial, because the time to prepare […]
Employers that own corporate jets and pay a management company to fly them were not pleased by a recent IRS memo on tax treatment of such arrangements, and two private aviation trade associations have been working with IRS on relief. Chief Counsel Advice Memorandum 20120026 , although not binding (see note at end of this […]
Employers may not have to adjust their qualified transportation fringe benefit programs after all — at least not just yet. A legislative provision that would have affected QTFBs by boosting the mass transit exclusion to the same level as that for qualified parking — the so-called “mass transit parity” provision — did not make it […]