Monthly Archives: December 2014

Mass Transit Limits Increased

December 24th, 2014

On December 19, 2014. President Obama signed the Tax Increase Prevention Act of 2014 (the “Act). The Act included  changes to mass transit benefits. The monthly maximum for mass transit benefits provided to an employee has been $130 per month, while the parking fringe benefit has been $250. The Act has equalized the two benefits retroactively to January 1, 2014...

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Another day… Another Compliance Requirement

December 22nd, 2014

The Affordable Care Act (ACA) added to the already overwhelming amount of mandatory notices required for employers to remain compliant. Employers are required to provide employees with a variety of notices advising them of their rights and responsibilities in regard to FMLA, HIPAA and the ACA. The Employee Retirement Income Security Act (ERISA) is no...

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Paying Employees to Buy Health Coverage? Know the Ground Rules

December 22nd, 2014

Does your company’s health insurance plan include health reimbursement arrangements (HRAs) or flexible spending accounts (FSAs)? If so, you should know these plan components are both subject to the Affordable Care Act (ACA) and its “market reform” provisions. The Department of Labor and other principal agencies have issued another round of guidance1 to answer some...

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IRS Standard Mileage Reimbursement Rate Increases

December 18th, 2014

The Internal Revenue Service has issued its 2015 optional standard mileage rates. Effective January 1st, 2015, the IRS standard rate will be 57.5 cents per mile driven for business purposes (an increase of one-and-a-half cents from the 2014 rate of 56 cents per mile). Use of this rate is optional, though it is widely seen...

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Upcoming Healthcare Reform Requirements

December 10th, 2014

Be aware of upcoming Healthcare Reform requirements that impact FSA plans that have employer contributions. 1.   2014 Form W-2 reporting requirement for healthcare benefits:  Employers that prepared 250 or more W-2s for tax year 2013 will be required to report the total cost of any group health plan coverage that was provided to an employee. ...

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Compliance Questions – Cash Out Option

December 1st, 2014

Provided by Larry Grudzien Q. Each year, my client gives its employees a choice of health coverage or a cash payment of $3,000. If my client does not adopt a cafeteria plan, will any portion of the health coverage elected by the employee be taxable?   A. Yes. An employee will be taxed up to...

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