Fringe benefits - transit, discounts, other |
IRS's Updated Version of Taxable Fringe Benefit Guide
"This publication offers helpful insight into the IRS's views regarding the taxation, withholding, and reporting requirements for many fringe benefits. And unlike many other IRS summaries, it includes citations to statutes, regulations, cases, and guidance that make it useful as a gateway reference." (Thomson Reuters/EBIA)
Sick Time Payouts Costing Chicago Teachers' Retirement System
"Since 2006, the district paid a total $265 million to employees for unused sick and vacation days, according to an analysis of payroll and benefit data obtained by the Better Government Association under the Illinois Freedom of Information Act, the Chicago Sun-Times reports." (PLANSPONSOR.COM)
Culture Key to Work-Life Programs: AOL Benefits Build Culture of Trust
"In the larger world of work-life and family-friendly programs, we have found that company culture is one of the main factors that determines the success of these programs and that, in turn, work-life programs can be a tool for a real cultural revolution." (Employee Benefit News)
Eight Discounted Perks Programs That Can Boost Employee Morale
"Employers sign up to offer the perk to their employees, and in turn their employees will receive a discount if they enroll in the service. It's a win-win all around: The employee wins by saving money, the service provider wins by gaining more business and the employer wins by increasing employee morale. The best thing about perk programs is that they are free to the employer." (Employee Benefit News)
Seven Companies With Unique Employee Health Benefits
"Home-improvement retailer Lowes established a partnership with the Cleveland Clinic in Ohio to offer heart surgery procedures at no cost to full-time employees and dependents enrolled in its self-insured medical plan. Lowe's covers all medical deductibles and coinsurance amounts, as well as travel and lodging expenses for the patient and a companion." (Mother Nature Network)
Enhanced Commuter Benefit Might Be Tied to Payroll Bill
"Public agencies, businesses and lawmakers are hoping a provision that allows public transit riders to put away more pre-tax money for commuting costs will be attached to legislation on the payroll tax cut, which is set to expire on Feb. 29." (LifeHealthPro)
Local Ohio Businesses Keep Employees Happy with Wide Range of Perks
"Companies in the Dayton area work to keep their employees happy, offering benefit packages that include health and disability insurance, 401(k) retirement plans, and paid vacation and holidays. Some businesses take it a step further, showering their staff with luncheons, treats in the break room, and free trips to sporting events and amusement parks." (Cox Ohio Publishing)
[Guidance Overview] IRS's 2012 Maximums for Valuing an Employer-Provided Vehicle's Personal Use
"If a company car is used for commuting or other personal uses that are more than de minimis, the employee will recognize income on the value of the personal use. That value may be determined using a general valuation rule or one of three special valuation rules: the automobile annual lease valuation rule, the cents-per-mile rule, or the commuting valuation rule." (Thomson Reuters/EBIA)
Am I Legally Required to Give Bereavement Leave
"There is no federal law on point. But, many companies still incorporate bereavement time off into their employee policies." (FindLaw)
The Supreme Court Should Reexamine Decisions That Have Made It Hard for People to Sue Their Own States
"[The case in question is concerned] with sick leave. [The plaintiff's] lawyers asked the court to consider the Family and Medical Leave Act as a whole and conclude that the law is 'an integrated response to gender discrimination.' If that's the case, men as well as women can argue that the law is constitutional." (Los Angeles Times)
Wisconsin State Worker Severance Packages Scrutinized
"The joint legislative subcommittee hearing follows reports by the Pioneer Press and KSTP-TV in November about $57 million paid out in unused sick time to state employees - a practice largely unheard of in the private sector - and $32 million paid out in unused vacation time between January 2008 and June 30, 2011." (MediaNews Group, Inc.)
The Positive Economic Impacts of Paid Family Leave for Families, Businesses and the Public
"To date, few studies have examined the economic effects of paid family leave as distinct from the effects of unpaid leave or no leave. As such, this is an important emerging area of research. If paid leave policies have the potential to protect women's and men's wages and long‐term earnings, and perhaps even to reduce the use of state‐ and federally‐funded public assistance, then any political or economic investment in such policies would be ? quite literally ? worth the cost." (Center for Women and Work, Rutgers, The State University of New Jersey)
Prepare for Higher Child Care and Commuting Costs in 2012
"Thanks to little-known factors such as lower transit and child care benefits, some workers can expect to have their net pay decrease by several hundred dollars this year as new federal regulations rolled out Jan. 1." (Reuters via Employee Benefit News)
[Guidance Overview] IRS Hikes 2012 Vehicle Values
"Employers with fleets of vehicles will be glad to know that the IRS has made it possible for them to determine the value of making them available for use in 2012. The IRS on Jan. 17 released the maximum vehicle values for use with the special valuation rules for employer-provided cars, trucks and vans in 2012." (Thompson Publishing Group)
Cash Out of Paid Time Off May Be Tax Trap
"PTO plan designs run the spectrum from strict use-it-or-lose-it plans to plans that allow employees to accumulate days, months or even years of PTO over their careers. Unfortunately employers often overlook laws that prohibit or restrict certain plan designs or that create unintended tax consequences." (Poyner Spruill LLP)
[Guidance Overview] Employer's Deduction for Flight Crew Meals Limited because De Minimis Rule Did Not Apply
"This [Chief Counsel Advice memorandum] illustrates how fringe benefit exclusions can sometimes overlap. When exclusions are provided under Code ? 132 and another section of the Code, a priority rule typically makes the Code ? 132 exclusion unavailable. But there are a few exceptions, including one that preserves the Code ? 132(e) de minimis fringe exclusion despite the availability of other Code exclusions. While in this instance it mattered little to employees which exclusion applied, it made a substantial difference to the employer." (Thomson Reuters/EBIA)
[Guidance Overview] IRS Mileage Rate Remains Unchanged
"Beginning on Jan. 1, 2012, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be 55.5 cents per mile for business miles driven. The rate for business miles driven is unchanged from the mid-year adjustment that became effective on July 1, 2011." (Barker Olmsted & Barnier)
Six Workplace Perks That Can Do More Harm Than Good
"The problem with most perks is that they may be intended as rewards, but all they really do is create artificial distinctions based on arbitrary and often self-serving criteria. That's why dropping most perks ' either yours or those extended to certain others ' is a great way to eliminate real or perceived barriers between you and your employees." (Mansueto Ventures LLC)
Workplace Perks Aren't What They Used to Be
"Pet insurance, at-your-desk meditation services, jewelry discounts and funeral planning -- from the quirky to the somber, workplaces are providing a range of unique benefits in 2012." (www.greenbaypressgazette.com)
Some Employers Turn to Quirky Perks for Workers
"Pet insurance, at-your-desk meditation services, jewelry discounts and funeral planning -- from the quirky to the somber, workplaces are providing a range of unique benefits in 2012." (USA TODAY)
New Jersey Governor's Issue with Public Workers Cashing in Unused Sick Days for Lump-Sum Payments
"[T]he issue is not as black-and-white as Christie makes it sound, and the dollar figures he drops to make his case are based on estimates, worst-case scenarios, and old data." (The Philadelphia Inquirer)
[Guidance Overview] Standard Mileage Rate for Medical and Moving Expense Purposes Will Decrease Slightly for 2012
"Transportation expenses that are deductible medical expenses under Code ? 213 generally can be reimbursed on a tax-free basis by a health FSA, HRA, or HSA." (Thomson Reuters/EBIA)
[Guidance Overview] Congress Fails to Extend Transit Subsidy; Employees Face Additional Taxable Income in 2012
"Because this exclusion is determined on a monthly basis, employers must report the value of such benefits above the $125 per month exclusion as income to the employee and withhold the appropriate taxes." (Davis Wright Tremaine)
Many U.S. Workers Fail to Use Their Earned Vacation Days
"While most employees clearly value their vacation time, three recent studies, all conducted by Harris Interactive on behalf of firms in the travel industry, found that many fail to take full advantage of the time off they've earned." (Human Resource Executive Online)
How to Avoid Leave-Related Lawsuits
"Employers that grant generous leaves for disability or maternity can run afoul of insurance contracts for medical, disability or life coverage. Here are two tips for employers to avoid leave-related lawsuits . . . ." (Employee Benefit News)
Companies Struggling with Less Funding to Cover Expenses for Employees' Reward Trips
"With more companies struggling with smaller budgets to reward productive employees, some are restricting travel to certain locales or limiting items eligible for expense reimbursements. Such an approach may be penny-wise and pound-foolish, however." (Human Resource Executive Online)
Nebraska's City of Bellevue's Costly Carry-Over Time Still Vexing
"Under a long-standing policy, . . . City of Bellevue employees have been allowed to bank all their unused vacation and cash it out at their current salary. Most employees have waited until retiring to cash out." (The Omaha World Herald)
Step-by-Step Guide to Connecticut's Paid Sick Leave
"The Paid Sick Leave law goes into effect Jan. 1, making Connecticut the first and only state to require employers to provide paid sick leave." (New England Business Media)
Counting Paid Time Off As FMLA Leave? Tell Employee You're Running Them Concurrently
"Smart employers make sure that employees understand that's how it works. That way, employees won't run out of leave and lose their jobs because they didn't realize the clock was ticking." (Business Management Daily)
A Sabbatical Your Employer Might Actually Like
"We're seeing that allowing sabbaticals impacts retention numbers for companies, loyalty, and creativity and innovation. People come back better able to contribute." (The Wall Street Journal)
PTO Programs One Way to Provide Employees with Adequate Leave While Cutting Down on Absenteeism and Costs
"The benefits of the program, according to survey respondents, include reduced unscheduled absenteeism and administrative burden, improved morale, cost savings and a competitive advantage in the job market." (Governing)
U.S. Fares Poorly in Employee Holiday Entitlements
"Workers in the U.K. and Poland have the most generous statutory employee holiday entitlements while employees in the U.S., Canada, Philippines, China and Thailand have the least generous entitlements, according to an overview of employee regulation and employment practices released by Mercer." (Employee Benefit News)
Abilene, Texas, Entities Say Paid Maternity Leave Rare, but Options Are Available
"A recent Census Bureau analysis indicated 51 percent of first-time mothers in 2006-08 took paid leave, up from 37 percent in 1981-85, though most Abilene businesses and entities interviewed Monday said they use guidelines established by the Family and Medical Leave Act of 1993." (Abilene Reporter-News)
[Guidance Overview] IRS Releases 2011 Version of Publication 521 on Moving Expenses
"Code ? 132(g) allows employers to reimburse employees for certain moving expenses on a tax-free basis, so long as the expenses would have qualified for an individual tax deduction under Code ? 217 and the accountable plan rules are met." (Thomson Reuters/EBIA)
Employee Holiday Parties/Gifts Range from a Meal to Free Cars
"Lantana recycling company Southern Waste Systems holds a holiday party at the South Florida Fairgrounds this weekend for its 440 employees. Five workers named 'employees of the year' go home with a Smart Car, more than a $12,000 value. All workers enjoy a catered lunch and a magic show, and employees' children go home with presents." (Sun Sentinel)
[Opinion] The Commuting Tax Break Puzzle: Why Driving Is Rewarded Over Taking the Bus
"This backward state of affairs, where a solo driver in a Lexus trumps the hordes of people standing on the city bus and riding the suburban commuter train, is in part an accident of history." (The New York Times; free registration required)
New Jersey Mayors Endorse Governor's Plan to Alter Public Employees' Sick Leave and Vacation Benefits
"'As a lawyer, [the governor] ought to know that his proposal to eliminate existing local government liabilities for sick and vacation payments amounts to an unconstitutional taking,' [an] Assemblyman said. 'He also knows that local officials already have the power to negotiate caps on retirement payouts." (newjerseynewsroom.com)
[Official Guidance] Text of IRS Notice 2012-1 on the 2012 Standard Mileage Rates (PDF)
"This notice is effective for (1) deductible transportation expenses paid or incurred on or after January 1, 2012, and (2) mileage allowances or reimbursements paid to an employee or to a charitable volunteer (a) on or after January 1, 2012, and (b) for transportation expenses the employee or charitable volunteer pays or incurs on or after January 1, 2012." (U.S. Internal Revenue Service via BenefitsLink.com)
Five Holiday Benefits and Perks to Thank Employees
"Whether it's giving a small gift or throwing a holiday bash to show your care, employees will be thankful for your support and recognition." (Employee Benefit News)
Employee Perks Program Lets Small Businesses Offer Big Benefits
"The [BetterWorks Perks Platform] enables SMBs to provide 'large company-style' perks to their employees by offering them a cafeteria-style menu of discounted rates on food and beverages, entertainment, education, auto services, health and wellness, travel, pet care, recreation, cleaning services and more. Discounts average 15 to 30 percent, the company says." (TechMediaNetwork.com)
Annual Year-End Holiday Practices Survey Finds Organizations Somewhat Less Likely This Year to Pick Up the Full Cost
"Among employers planning to sponsor companywide celebrations in 2011, 85% will pay the full cost of the party -- down from the 89% that opted to pay the entire bill in 2009 and 2010 . . . ." (PLANSPONSOR.COM)
[Guidance Overview] Transit Pass and Vanpool Benefits to Shrink to $125 Per Month in 2012
"Unless U.S. Congress acts before the end of 2011, the monthly tax exclusion for employer‑provided transit pass and vanpool benefits will shrink to $125 in 2012, from the current $230. This reduction could mean the loss of hundreds of dollars of annual tax savings for employees who use these benefits. Meanwhile, the monthly tax exclusion for employer‑provided parking benefits is scheduled to increase by $10 to $240 for 2012." (McDermott)
Survey Finds Employees Can Expect More Perks in the Workplace this Holiday Season
"According to the survey, 40% of employers plan to give their employees holiday bonuses this year, up from 33% in 2010. Among this group, 73% are planning to give the same amount as last year. Fourteen percent plan to provide a greater bonus than last year, while 13% plan to provide a smaller bonus." (PLANSPONSOR.COM)
Employees Want Cash and Benefits Gifts for the Holidays
"Nearly three-quarters (72%) of employees responding to a survey . . . said a cash bonus would be among their top choices for employer-gifted holiday perks this year, followed by a salary raise (62%), and paid time off (32%)." (PLANSPONSOR.COM)
[Guidance Overview] Transit Pass and Vanpool Deduction Benefits to Shrink to $125 Per Month in 2012
"Employers providing transit pass or vanpool benefits need to decide whether to restrict to $125 employees' monthly salary deductions for 2012, or instead allow employee salary deductions of up to $240 per month. If salary deductions for transit passes and vanpool benefits are permitted up to $240 per month and the law does not change, amounts in excess of $125 per month will be taxable for 2012." (McDermott Will & Emery)
Worker Transit Benefits Scheduled to Shrink
"The maximum parking benefit will become $240 monthly as of Jan. 1, because of an adjustment for inflation. The transit benefit, however, is scheduled to drop to $125 a month, unless Congress acts to extend the higher benefit level or to make it permanent. Roughly 2.7 million people use the transit benefit, according to Commuter Benefits Work for Us, a coalition of transit groups and businesses." (The New York Times; free registration required)
How to Avoid Leave-Related Lawsuits
"1. With self-funded health plans, make sure eligibility policies that are more generous than FMLA or other federal laws are approved by the reinsurance carrier. . . . 2. Clearly communicate conversion rights and termination of coverage to employees on leave." (Employee Benefit News)
Americans Don't Enjoy Vacations as Do Global Peers
"The average employed European earns 25-30 vacation days in a given year, and, with some exceptions, tends to use them all. Brazilians treat vacation as the Europeans do ? as a vital part of being employed, rather than a luxury. The study showed that Brazilian workers receive 30 vacation days and enjoy every one of them." (PLANSPONSOR.COM)
Is Telecommuting Better for Your Health?
"The cost of commuting -- in terms of gas, time, carbon emissions and any other number of measures -- is high. But does commuting also take a toll on your health? A recent Swedish study, which tracked 12,000 workers and evaluated their work commutes and overall health, concludes that is does." (CBS Interactive Inc.)
Update DeMinimis Fringe Guidance, Group Tells IRS
"The IRSAC Small Business/Self-Employed Subgroup . . . consists of eight tax professionals from wide-ranging backgrounds . . . . [and recommends that the IRS update] de minimis fringe benefit examples to deal with changes in the business environment that have occurred over the past 20 years providing greater certainty to IRS examiners, employers and employees and reporting income . . . ." (U.S. Internal Revenue Service)
[Guidance Overview] Guidance on Connecticut Paid Sick Leave Law Now Available
"The law goes into effect on January 1, 2012. The guidance is available from the Department's website, at http://www.ctdol.state.ct.us/wgwkstnd/SickLeaveGuidance.pdf." (Jackson Lewis LLP)
Sick-Time Payouts Spike as Minnesota State Employee Retirements Rise
"Although paying out unused sick time is extremely rare in the private sector, it's common at all levels of government around the country. It's been the standard policy in Minnesota for at least 40 years, before state workers were unionized." (Pioneer Press)
New Study Finds Paid Sick Days Would Decrease Unnecessary Emergency Department Use
"Access to paid sick days could save $1 billion in medical costs annually according to a report by the Institute for Women's Policy Research." (Employee Benefit News)
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