Supreme Court Shuts Down Potential 2010 Employment Tax Refund Opportunity

In an update to my earlier blog, “Learn How You May Qualify for an Additional Tax Refund from 2010,” I referenced the case of U.S. v. Quality Stores, 693 F.3d 605 (6th Cir, 2012), in which an employer fired 3,100 employees, paid them severance benefits and argued that these benefits were not subject to FICA taxation. 

The Sixth Circuit Court of Appeals held that these types of payments were similar to supplemental unemployment compensation benefit payments (also known as “SUB” payments), which...

Read More »
0 Comments »

Affordable Care Act Regulations Update: Minimum Essential Coverage

On March 5, 2014, the IRS issued final regulations on the reporting requirements for providers of “minimum essential coverage” under the Affordable Care Act (ACA).  The shared responsibility provisions require employers who employ more than a certain number of full-time equivalent employees to offer affordable health care to a certain percentage of their full time employees (generally 70% for 2015, 95% for all future years) that provides a minimum essential coverage (MEC); employers who do...

Read More »
0 Comments »

Learn How You May Qualify for an Additional Tax Refund from 2010

Did you know, you may qualify for an additional 2010 employment tax refund? It is not uncommon for an employer to provide severance pay to an employee who leaves under certain circumstances. When severance payments are made, most employers treat them as wages subject to federal employment taxes (i.e. FICA).  In 2012, a case decided by the federal sixth circuit court of appeals (U.S. v. Quality Stores, 693 F.3d 605 (6th Cir, 2012)) held that severance-type payments were not subject to FICA...

Read More »
0 Comments »

Affordable Care Act Mandate: Updates to the 2015 Regulations

Final ACA regulations issued February 10, 2014 delay or reduce the employer mandate for all employers until January 1, 2016.

On February 10, 2014, the IRS issued an 89 page final regulation on one part of the Affordable Care Act (ACA) that has been of particular concern to employers—the shared responsibility provisions. The shared responsibility provisions require employers who employ more than 50 full-time equivalent employees (FTEs) to offer FTEs affordable healthcare that provides a minimum...

Read More »
0 Comments »

Contributory Retirement Plans: What You Need to Know About Late Remittance

It’s pay day!  Your gross pay every two weeks is $1,000, but somehow you only end up with $700.  The government has taken their cut, health insurance premiums have been withheld... and some of us are putting a few dollars aside for retirement

We have a deduction labeled “401k” on our check stub.  It’s our contribution to our retirement savings and in a perfect world, the money that is being withheld would show up in our 401k accounts as an increase in our investments on the same day we receive...

Read More »
0 Comments »

Tax Deductible Expenses: Has the IRS Changed Positions on Bonus Accrual Deductions?

Many employers have formalized annual bonus programs for key employees; these arrangements typically award a bonus if employees reach specific targets. As employers cannot always determine if the targets have been met until after the year is over, it is common for an accrual basis employer to pay a bonus to an employee after year-end. 

Employers can pay the bonus after year-end and still deduct it on the prior year’s tax return if the program satisfies all three requirements of the “all events...

Read More »
0 Comments »

IRS Modifies Flex Spending Account Rules for 2014

Many employers offer employees a flexible spending account (FSA) benefit as part of their cafeteria plan (operated in accordance with Internal Revenue Code Section 125) that is part of their overall employee welfare benefits plan. FSAs allow employees to contribute up to $2500 per year on a pre-tax basis which can be used for approved types of medical expenses that are not otherwise covered by insurance.

One of the downsides of an FSA from the employee’s standpoint is the "use it or lose it"...

Read More »
0 Comments »

How to Avoid Department of Labor Audits of Your Qualified Plan

I recently attended a conference of pension plan professionals, and one of the topics of conversation was the Department of Labor's (DOL) increase in examinations of tax qualified retirement plans. The DOL can wreak havoc on a tax qualified plan in many areas, including the assessment of civil penalties on the plan, the plan sponsor, and responsible persons at the plan sponsor. Sometimes these can lead to criminal prosecutions. Plan examinations are often time consuming, expensive to conduct,...

Read More »
0 Comments »

IRS Announces Qualified Plan Limitations for 2014

On October 31, 2013 the IRS announced cost-of-living adjustments (COLAs) affecting dollar limits for defined contribution and defined benefit retirement plans and other retirement-related items for tax year 2014. The changes are not large due to the moderate inflation rate that the US economy has experienced during the last year.    

Contribution Limits

2014

2013

Elective Deferral Limit - 401(k), 403(b) and 457(b) Plans

$17,500

$17,500

Catch-Up Contribution Limit

$5,500

$5,500

Elective Deferral Limit -...

Read More »
0 Comments »

Skoda Minotti Announces Fall Speaker Series Schedule

As part of our commitment to delivering on the promise of providing transformational business solutions, Skoda Minotti announces its fall Speaker Series and Aurum Wealth Management events for professionals and interested members of the community.

Our events feature experts-in-the-field covering current and trending financial topics affecting businesses and employees.  Each session is presented free of charge and is open to all. Onsite parking is free and the building is handicapped accessible.

Morn...

Read More »
0 Comments »