Practical HR Tips, News & Advice. Updated Daily.
The Treasury Department and the IRS have issued additional guidance on Health Savings Accounts, or HSAs, the recently authorized tax-exempt savings accounts employees can set up to pay medical expenses. For more information, go to the Treasury Department website.
In a decision that could be enormously costly for some California public employers, the state’s high court has ruled that long-term temps hired by the Metropolitan Water District of Southern California (MWD) through private temporary agencies may be eligible for full CalPERS retirement benefits. This opinion highlights the need for employers to be on high […]
The Treasury Department and the IRS have announced that certain over-the-counter (OTC) drugs can be reimbursed through employers’ flexible spending accounts (FSAs). This means that reimbursements by FSAs and other employer health plans allow employees to make their purchases with pretax dollars.
Over the last several years, many employers have converted their traditional pension plans to cash balance plans. But according to two recent federal court decisions, these cash balance arrangements may violate the Employee Retirement Income Security Act, (ERISA), the federal law regulating employee benefits.
Former Walt Disney Co. executive Judy Denenholz, who worked for the company almost 20 years, charged she was fired for refusing to sign off on Disney’s response to an IRS audit. Denenholz claimed that the response significantly understated the company’s back-tax liability. She sued Disney under a California Labor Code provision that prohibits retaliation against […]
If your employees take home tips, you should be aware that a new U.S. Supreme Court decision approves the way the Internal Revenue Service figures your tax liability on those tips. And if you should want to dispute the amount owed, you’ll now need to keep more detailed records of each employee’s tips.
The Internal Revenue Service has issued a ruling that allows employees to carry over, tax free, money provided by their employers for out-of-pocket health costs. Here’s what you should know about the new rule.
Employers are required by the Family and Medical Leave Act to provide up to 12 weeks of job-protected leave to employees to care for a newly born or adopted child. Once the employee has returned to work, however, no federal or state laws obligate employers to give child care assistance. However, national studies show that […]
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 […]