IRS to Payroll: It’s going to be a busy year — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

IRS to Payroll: It’s going to be a busy year

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in Office Management,Payroll Management

The IRS has pegged 317 projects in its annual Priority Guidance Plan, commonly called the business plan. While that’s down from last year’s 324 projects, many of them will have a substantial impact on your payroll operations.

The plan is the IRS’ road map for what it wants to accomplish by June 30, 2015. Not everything will get done, of course, and priorities may change. Here’s what to expect.

It’s not quite like getting the enemy’s plans before the battle, but it’s close. If you know where the IRS is planning to dedicate its scant resources, you can devote more attention to the same compliance trouble spots. Payroll-related projects cited in the plan include the following:

  • Guidance on timely filing when a due date falls on a Saturday, Sunday or holiday
  • Guidance under tax code Sections 119 and 132 on employer-provided meals. Note: The IRS has taken an interest lately in companies that don’t include the value of employer-provided gourmet meals in employees’ income
  • Guidance updating the reporting requirements for sick pay benefits. Note: Beginning next year, recap forms must be filed with the IRS, not the Social Security Administration
  • Guidance on employers obtaining employees’ consent before filing a FICA refund claim
  • Guidance regarding employees’ election pro­­ced­­ures under tax code Section 83(b)
  • Final regulations on the conditions under which employers may reimburse employees who incur local lodging expenses (i.e., expenses incurred when employees aren’t traveling away from home overnight)
  • Final cafeteria plan regulations
  • Guidance related to health care reform, including the 40% excise tax on so-called high-cost Cadillac plans, which begins in 2018, and regulations on group plans that provide minimum value.

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