Archive for the ‘Tax’ Category

Independent Contractor or Employee? IRS Gives Employers Something to Consider

Authored By: Calvin R. Chambers

For the past several years, the Internal Revenue Service (“IRS”) has been devoting considerable attention to worker classification issues involving the misclassification of employees as independent contractors. These misclassifications are important to the IRS and the federal government because they often lead to underreporting and underpayment of taxes. Traditionally, the IRS has sought to address worker classification issues through the audit process, which can quickly become costly for employers that are assessed unpaid taxes, penalties and interest for workers who are reclassified as employees by the IRS.

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IRS Guidance on $2,500 Limit For Flexible Spending Accounts

Authored By: Tara L. Slone

The IRS recently issued Notice 2012-40 providing guidance on the $2,500 maximum annual limit on employee contributions to health care flexible spending accounts (“FSAs”) as set forth in the Affordable Care Act. The full text of the Notice can be found here.

The Act states that the limit is effective January 1, 2013 for any “taxable year.” The Notice clarifies that the $2,500 limit becomes effective for the first plan year for the employer’s cafeteria plan that begins on or after January 1, 2013. For calendar year cafeteria plans, the limit will be effective for the plan year beginning January 1, 2013. For fiscal year cafeteria plans, the limit will apply for the first plan year that begins in 2013. (more…)

Employee Scholarships – Taxing Questions for You

Authored By: Jennifer H. Richter

If you are one of those generous employers who provides educational scholarships to current employees and prospective employees, we strongly recommend that you evaluate whether you are appropriately taxing these benefits. When an individual hears the word “scholarship,” they frequently don’t think of this financial award as potentially having tax implications. However, for purposes of the Internal Revenue Code, there are very specific requirements in order for an employer-provided scholarship to avoid federal income tax. (more…)

Archive for the ‘Tax’ Category

Independent Contractor or Employee? IRS Gives Employers Something to Consider

IRS Guidance on $2,500 Limit For Flexible Spending Accounts

Employee Scholarships – Taxing Questions for You

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