Taxation of Employee Benefits: Employment Law Manual Updated
Author: Rena Pirsos, XpertHR Legal Editor
The Taxation of EmployeeBenefits section of the Employment Law Manual has been updated to include a number of important legislative and regulatory changes that occurred at the end of 2015.
The following subsections have been updated as noted:
- Nontraditional Living Arrangements has been updated to include an explanation of IRS Notice 2015-86, which provides an employer with additional guidance regarding the impact of the Supreme Court's decision in Obergefell v. Hodges on the taxation of retirement and cafeteria plans;
- Health Insurance Coverage Information Reporting has been updated to include an explanation of IRS Notice 2016-4, which clarifies Affordable Care Act (ACA) reporting requirements for large self-insured employers and changes reporting and filing deadlines for the 1094 and 1095 series of forms;
- Medical Savings Accounts has been updated to note that the Protecting Americans from Tax Hikes (PATH) Act of 2015 empowers the IRS to issue regulations allowing an employer to truncate an employee's Social Security Number on Form W-2;
- Long-Term Care Insurance (LTCI) has been updated with the 2016 inflation-adjusted exclusion amount for LTCI contract payments;
- Health Reimbursement Arrangements (HRAs) has been updated to include an explanation of IRS Notice 2015-87, which clarifies the integration of HRAs and group health plans under the ACA; and
- Health Flexible Spending Arrangements (FSAs) has also been updated to include a discussion of Notice 2015-87, which clarifies limitations on carryovers by plan participants of unused amounts.
A number of Practical Examples throughout the section have also been updated for 2016.