Category: Fringe Benefit and Similar Programs
Student Loans and Code Section 127 Educational Assistance Programs: A Reminder from the IRS, FAQs, and a Sample Plan Document
On August 28, the IRS issued IR-2024-227 , reminding employers of the following key aspects of educational assistance programs under Internal Revenue Code Section 127: They can be used to help reimburse the costs of or pay for employees’ student loans through December 31, 2025; They must be established...
When Cash is not King: Holiday Gifts as “De Minimis” Fringe Benefits
To celebrate the holiday season, this post highlights the tax consequences of employer-sponsored holiday perks such as gift cards, turkeys, hams and gift baskets. Under the current tax rules, employers may give infrequent low value gifts of property or services to employees on a tax-free basis. [1] Cash and...
Leave Sharing Programs: A Critical Bridge for Employees Affected by COVID-19
The federal government may soon be providing paid leave assistance to employees affected by COVID-19. In the meantime, however, employers that maintain leave sharing programs can leverage those programs to help soften the financial impact on employees forced to miss work because of COVID-19. Leave sharing programs allow employees...
New Tax Credit for Paid Leave: What Benefits Professionals Should Know
The 2017 Tax Cuts and Jobs Act contains a two-year pilot project, developed by Senators Angus King (I-ME) and Deb Fischer (R-NE), that provides a tax credit to employers that offer at least two weeks of paid leave to low and moderate income employees. If your company already offers...
Tax Reform: A Brief Overview of the Final Legislation
Congress passed the Tax Cuts and Jobs Act on December 20, 2017, and President Trump signed the bill into law on December 22nd. As everyone knows by now, the new law makes sweeping changes affecting most areas of income taxation. And while the final legislation contained fewer provisions affecting...
Tax-Free Treatment of Cell Phones, Without the Burdensome Recordkeeping
It is fairly common for employers to provide employees with cell phones or to reimburse employees for the business use of their personal cell phones. Until recently, properly receiving favorable tax treatment for such employer-provided cell phones and reimbursements required burdensome recordkeeping. IRS Notice 2011-72 and an accompanying Field...
