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.
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.
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?
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?
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.
Q: We received a Notice of Levy for an employee on Form 668-A (ICS). It says it’s to collect a CIVPEN tax, and doesn’t allow the employee any exemptions. It also doesn’t tell us how much to withhold per pay period. The IRS can’t take all of this employee’s money, can it?
Employers that use the standard mileage rate (56 cents a mile in 2014) to value employees’ personal use of company vehicles are restricted to supplying vehicles of modest value. For company cars first made available to employees in 2014 and that qualify for the standard mileage rate valuation method, the fair-market value remains $16,000.
Here’s a chart with a summary of state laws and local ordinances on paid and unpaid short-term leave laws.
Dog days of summer slowing you down? You can keep cool by keeping busy. Take some time now to make sure your Payroll i’s are dotted and your t’s are crossed.
Wage-and-hour investigations have become more complex, according to Corey Walton, a community outreach and resource planning specialist with the U.S. Department of Labor’s Wage & Hour Division. His best advice: Stay in touch with your investigator.