Overview: Fringe benefits, such as health benefits, company cars, commuter transportation benefits and educational assistance plans, just to name a few, are the icing on the cake in attracting and retaining high quality employees. In this heavily regulated area, however, employers must stay abreast of frequent payroll tax law changes to prevent an otherwise tax-free fringe benefit from becoming fully taxable. Employers must also look out for changes to the special payroll tax rules that apply to other common types of payments such bonuses, severance pay and back pay.
Author: Rena Pirsos, JD, Legal Editor
Updated to include new withholding and reporting requirements for Qualified Small Employer HRAs, effective November 20, 2017.
Updated to reflect 2018 inflation-adjusted amounts.
The IRS has released the 2018 cost-of-living adjustments (COLAs) to the dollar limitations on benefits and contributions to qualified retirement and deferred contribution plans, such as § 401(k) plans, and the inflation-adjusted fringe benefit limitations.
In an information letter, the IRS concludes that benefits an employer provides under its company parking policy are taxable income to the employees that choose to use the benefit.
Despite the Congressional joint resolution that nullifies the Department of Labor's (DOL) Employee Benefits Security Administration (EBSA) rule regarding state auto-enrollment IRAs, the Oregon State Treasury will proceed with its plan to roll out its OregonSaves pilot program on July 1.
A joint resolution that nullifies a Department of Labor, Employee Benefits Security Administration rule advising states on auto-enrollment IRAs is headed to the President's desk.
Payroll tax laws affecting fringe benefits and other common employer payments.