2015 Fringe Benefit and Pension Plan COLAs Released: Employment Law Manual, Quick Reference Chart Updated

Author: Rena Pirsos, XpertHR Legal Editor

The tax year 2015 cost-of-living adjustments affecting dollar limitations on health and fringe benefits and contributions under qualified retirement plans and other inflation-adjusted amounts have been released by the Internal Revenue Service. Employers must reprogram their computers and payroll systems before the first payroll of the upcoming year to ensure that they are withholding the correct amount of taxes from the pay of employees who receive the benefits.

Many of the pension plan limitations will increase for 2015 because the increase in the cost-of-living index met the statutory thresholds that trigger their adjustment. Other limitations will not change because the relevant thresholds were not met. The Taxation of Employee Benefits section of the Employment Law Manual and the Quick Reference chart showing the Annual Retirement Plan COLAs and Fringe Benefit Limitations have been updated accordingly.