Monthly Archives: October 2014

Forget About Use-it-or-Lose-it: The New $500 Carryover Rule has FSA Accounts on the Rise!

October 29th, 2014

The U.S. Treasury Department issued a new ruling last fall that is rapidly increasing the popularity of flexible spending accounts (FSA) and the subsequent savings employers gain from them. This new option allows FSA participants to carryover up to $500 of unspent funds from one plan year into the next. Due to this new incentive,...

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IRS Announces Retirement Plan Limitations for 2015

October 27th, 2014

The Internal Revenue Service and Social Security Administration announced cost of living adjustments applicable to dollar limitations for qualified retirement plans, and other limits  for tax year 2015.  The important limits are provided below: Limits:  401(k), 403(b) & 457(b) deferrals $18,000 Catch-up 401(k), 403(b) & 457(b) $6,000 415(c) Limit $53,000 Annual Compensation Limit $265,000 HCE Compensation...

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Toeing the Fine Line Between Employees and Independent Contractors

October 24th, 2014

Businesses often prefer to treat workers as independent contractors to lower their costs and administrative burdens. But the IRS, the U.S. Department of Labor, various state agencies or even the employees themselves may challenge an employer’s classification. The U.S. Tax Court considers seven factors when deciding whether to classify workers as employees or independent contractors....

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IRS Releases Notice 2014-55 Providing for Additional Election Changes

October 24th, 2014

Provided by Larry Grudzien On September 18, 2014, the IRS released Notice 2014-55 which provides additional permitted election changes for health coverage under Code Section 125 cafeteria plans. This notice provides two specific situations in which a cafeteria plan participant may wish to revoke, during a plan year, the employee’s election for employer-sponsored health coverage under...

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Supporting Your Employee HSAs Across Multiple Banks

October 1st, 2014

With the growth of Health Savings Accounts (HSAs) it is quite common for employees to already have HSA accounts in place prior to their current employer offering HSA. Rather than requiring your employees to move their HSA to your bank of choice, you can use BASIC to administer HSA contributions to your employees’ already existing HSA...

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