Employee Benefit Plans
No one needs to remind business owners that the cost of employee health care benefits keeps increasing. One way to provide some of these benefits is through an employer-sponsored Health Savings Account (HSA). For eligible individuals, HSAs offer a tax-advantaged way to set aside funds (or have their employers do so) to meet future medical…
Read More
In 2022, the IRS released new federal tax withholding election Form W-4P, Withholding Certificate for Periodic Pension or Annuity Payments, and Form W-4R, Withholding Certificate for Nonperiodic Payments and Eligible Rollover Distributions, for optional use in 2022 and required use in 2023. The intent is to provide for more accurate federal income tax withholding, which unfortunately adds…
Read More
The IRS is increasing the amount individuals can contribute to a wide range of qualified retirement plans and accounts in 2023, including 401(k) plans and IRAs. The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan will increase by $2,000, to $22,500. The catch-up contribution…
Read More
Certain employers are required to report information related to their employees’ health coverage. Does your business have to comply, and if so, what must be done? Basic reporting rules for employee health coverage Certain employers with 50 or more full-time employees (called “applicable large employers” or ALEs) must use Forms 1094-C and 1095-C to report…
Read More
The IRS recently released guidance providing the 2023 inflation-adjusted amounts for Health Savings Accounts (HSAs). High inflation rates will result in next year’s amounts increasing more than they have been in recent years. What is an HSA? An HSA is a trust created or organized exclusively for the purpose of paying the “qualified medical expenses”…
Read More
If your business doesn’t already have a retirement plan, now might be a good time to start since current retirement plan rules allow for significant tax-deductible contributions. For instance, if you’re self-employed and set up a SEP-IRA, you can contribute up to 20% of your self-employment earnings, with a maximum contribution of $61,000 for 2022.…
Read More