Recent News

With an unlimited number of sources publishing HR related news it can be difficult to keep the facts straight. BASIC strives to deliver simple, easy-to-understand, and timely industry news/updates. From legal advice, regulation updates, and interesting interactive resources – we have you covered!


 Recent News



40 tax provisions for 2015

November 3rd, 2014

The Internal Revenue Service announced  in Revenue Procedure 2014-61  the annual inflation adjustments for more than 40 tax provisions for 2015, including the tax rate schedules, and other tax changes. This Revenue Procedure provides details about these annual adjustments. There are several benefit limitations for 2015 included: The annual dollar limit on employee contributions to employer-sponsored healthcare

Read more

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,

Read more

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

Read more

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.

Read more

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

Read more

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

Read more

DOs and DON’Ts for Deducting Meals, Entertainment and Travel

September 26th, 2014

If you’re claiming a deduction for meals, entertainment, auto or travel expenses, expect the IRS to closely review it. Too often, taxpayers have incomplete documentation or try to re-create records months (or years) later. In doing so, they often fail to meet the strict substantiation requirements set forth under tax law and by the IRS. Tax

Read more

Court: Missing COBRA Notice Led to Hefty Legal Penalties

September 26th, 2014

Just how important are COBRA notices when an employee leaves your company or organization? One employer learned the answer to this question when a proper and timely notice was not provided and a former employee sued. Here’s what happened in one recent case. The Facts of the Case Tondalaya Evans was employed by national book retailer, Books-a-Million, for

Read more

Another Employer Headache: The Complexity of ERISA Compliance

September 24th, 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

Read more

Review of Reporting Requirements under Code Sections 6055 & 6056

September 16th, 2014

In late August 2014, the IRS released instructions for completing Forms 1095-B, 1094-B, 1095-C and 1094-C. Many employers will use these forms to report its health coverage to the IRS and provide statements for coverage to its employees in early 2016. These forms are very important because the IRS will use the information on these forms to determine

Read more