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 […]
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. […]
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 […]
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 […]
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 […]
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 […]
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 […]
Provided by Larry Grudzien Are employee assistance programs subject to COBRA? An employee assistance program (“EAP” ) can include any of a variety of employer-sponsored programs that seek to prevent or mitigate personal or family problems that could adversely affect an employee’s productivity. For most EAPs , a third-party vendor is involved, with certain benefits (usually counseling) […]
Employee stock option plans (ESOPs) were conceived to be a “win-win” for businesses, under the right circumstances. The premise is, when employees have an equity stake in the company they work for, their interests will be aligned with owners because they actually become owners themselves. Congress established tax benefits for ESOPS to help business owners […]
The Department of Labor is extremely busy in launching on-site FMLA compliance investigations this year. As reports of more 2014 DOL audits surface, employers grow more afraid of failing an investigation for non-compliant FMLA policy and procedures, as well as providing insufficient paperwork including notices, certifications and records. A recent headline in the news pointed […]
