Category Archives: tax legislation

Health FSAs Gain More Flexibility

The IRS has modified the “use-or-lose” rule for health flexible spending arrangements (FSAs) to give employers the option to allow participating employees to carry over up to $500 of unused amounts remaining in their health FSAs at year-end. Continue reading

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Healthcare Reform Reporting Requirement Deadline October 1, 2013

Are you aware of the healthcare reform law that goes into effect on January 1, 2014? Did you know that as an employer, you are required to send a marketplace notice to your employees by October 1, 2013? Effective January … Continue reading

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Good News – Payroll Tax Cut Extended through 2012!

Congress gave all wage earners a short-lived 2012 reprieve by temporarily extending the 2% payroll tax cut though February of 2012. The payroll tax, frequently referred to as FICA or OASDI on your paycheck, has historically been 6.2%. This is … Continue reading

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IRS Announces Pension Plan Limitations for 2012

The Internal Revenue Service today announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for Tax Year 2012. In general, many of the pension plan limitations will change for 2012 because the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment. Continue reading

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Illinois Small Business Job Creation Tax Credit

There is still time to hire employees for your Illinois business to qualify for the Illinois Small Business Job Creation Tax Credit. By creating at least one new, full-time position that meets the eligibility requirements, you may be eligible to … Continue reading

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President’s budget proposal calls for quarterly W-2 reporting

There is a provision in the President’s fiscal year 2011 budget (Oct. 1, 2010 to Sept. 30, 2011) that would require quarterly W-2 reporting, rather than annual. The budget document says that increasing the timeliness of wage reporting would enhance … Continue reading

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2010 Health Insurance Reform Tax Credit Calculator for Small Business

Found this handy calculator if you’re wondering if your business qualifies for the new small business tax credit on health insurance. Courtesy of National Federation of Independent Businesses.

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Payroll tax holiday and up-to-$1,000 credit for employers who hire unemployed workers.

A key tax change affecting business was made in the recently enacted Hiring Incentives to Restore Employment (HIRE) Act. To help stimulate the hiring of workers by the private sector, the new law exempts any private-sector employer that hires a worker who … Continue reading

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COBRA premium subsidy extended and expanded

On December 19, 2009, the 65% COBRA premium subsidy that was due to expire December 31, 2009 for newly terminated employees was extended. The extension adds another six months to the maximum period that the COBRA subsidy can run, and also extends … Continue reading

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Are You Classifying Your Workers Properly?

One of the steps we recommend to clients who use independent contractors, and who therefore face a heightened risk of a costly IRS payroll tax or benefits audit, is a quick review of some of the key things the IRS … Continue reading

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