It’s a common problem every year. Employers discover that when their 401(k) plans must make required minimum distributions, the addresses on file for some distributees have become invalid. The U.S. Department of Labor (DOL) and the Internal Revenue Service (IRS) have both offered guidance about dealing with participants and beneficiaries who are unresponsive or cannot […]
In Notice 2021-61, the Internal Revenue Service (IRS) recently announced 2022 cost-of-living adjustments to dollar limits and thresholds for qualified retirement plans. Here are some highlights: Elective deferrals. The annual limit on elective deferrals (employee contributions) will increase from $19,500 to $20,500 for 401(k), 403(b) and 457 plans, as well as for Salary Reduction Simplified […]
Many employers have found value in combining a high-deductible health plan (HDHP) with a Health Savings Account (HSA). The Internal Revenue Service (IRS) recently published two information letters — Letter 2021-0008 and Letter 2021-0014 — that provide some helpful details on the applicable rules. Claim of Mismanagement The first letter responds to an inquiry by an HSA […]
On Oct. 13, 2021, the Social Security Administration (SSA) issued its wage cap and benefit amounts for the 2022 calendar year. Compared to 2021, both amounts have increased to account for inflation and cost-of-living adjustments (COLA). DM Payroll Solutions shares key takeaways from the newly increased amounts to prepare you for next year. Social Security […]
U.S. employers with at least 50 full-time equivalent (FTE) employees are required to comply with the Affordable Care Act (ACA) by filing their employees’ health insurance information annually with the Internal Revenue Service (IRS). This information includes the year’s payroll and benefits data broken down by month, and there are also events that must be […]
The Internal Revenue Service (IRS) recently issued a statement sharing the 2022 maximum contribution levels for health savings accounts (HSAs), out-of-pocket spending limits and deductible minimums for high-deductible health plans (HDHPs) that have to be used in tandem with HSAs. The IRS releases the cost-of-living adjustments annually by June 1 and the updates apply to […]
The Internal Revenue Service (IRS) created a new fact sheet offering guidance for small to mid-size employers wishing to leverage the refundable tax credits under the American Rescue Plan Act (ARPA). The new guidance states the tax credits will reimburse employers for the cost of offering paid emergency sick and expanded family and medical leave […]
Recently, the U.S. Department of Labor (DOL) issued EBSA Disaster Relief Notice 2021-01, a communication especially of interest to employers. The notice clarifies the duration of COVID-19-related deadline extensions applying to healthcare benefit plans. Continuing Extensions The DOL and the Internal Revenue Service (IRS) issued guidance last year stating that the COVID-19 outbreak period – […]
The Internal Revenue Service (IRS) recently issued Notice 2020-54 detailing how employers must report the amount of emergency sick leave wages as well as expanded family leave wages paid to their employees under the Families First Coronavirus Response Act (FFCRA) within the time period of Apr. 1, 2020 and Dec. 31, 2020. DM Payroll Solutions […]
In light of the COVID-19 crisis, the Internal Revenue Service (IRS) has issued new guidance pertaining to cafeteria plan changes, health flexible spending arrangements (FSAs) and health savings accounts (HSAs) in IRS Notice 2020-29 and Notice 2020-33. The new guidance provides flexibility to employees across the country as businesses continue to navigate the current health […]
