Understanding Employee Benefits

IRS Annual Limits on Qualified Plans for 2019

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IRS Annual Limits on Qualified Plans for 2019 By Jeffrey P. Cairns The Internal Revenue Service has released the 2019 cost-of-living adjustments affecting dollar limits on benefits and contributions for qualified retirement plans. The Notice providing the cost-of-living adjustments is available here 2018-83. The Service announced the Health Savings Account... Read More

Topics: Cafeteria Plans, Payroll, Retirement Plans

Embezzlement of 401(k) Deferrals by COO of Architecture Firm is (Doubly) Costly

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On March 22, 2017, the U.S. Court of Appeals for the Second Circuit ruled against Christine Bodouva that her restoration of funds to her Company’s 401(k) Plan should be offset against the District Court’s order for forfeiture in her criminal trial. U.S. v Christine Bodouva, Case 16-3937, 2nd Cir. 3/22/17.... Read More

Topics: ERISA and Other Benefits Litigation, Fiduciary Guidance, Payroll, Retirement Plans

Federal Court Determines that Employer Use of Employee Health Insurance Premium Payments Breach of ERISA Fiduciary Duties

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On November 9, 2015, Minnesota Federal District Judge Susan Richard Nelson ruled that the president and CEO of Faribault Woolen Mills Company breached his fiduciary duties under ERISA by diverting Employee health insurance premiums toward corporate and personal use. The lawsuit was brought by the U.S. Department of Labor. Facts:... Read More

Topics: ERISA and Other Benefits Litigation, Fiduciary Guidance, Health Plan, Payroll, Welfare Plans

Some Wellness Benefits are Taxable

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My colleagues blogged on recent wellness guidance from the Equal Employment Opportunity Commission (EEOC) and the three agencies charged with enforcing the Affordable Care Act (ACA), the Department of Treasury, the Department of Labor, and the Department of Health and Human Services. The guidance from the EEOC reiterated that compliance... Read More

Topics: Health Care Reform, Health Plan, Payroll

Gas Prices Must be Going Down

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Every year the IRS issues optional standard mileage rates that can be used by taxpayers to calculate the deductible cost of operating an automobile for business, charitable, medical or moving purposes. Many employers reimburse employees based on this standard mileage rate. The standard mileage rate also factors into medical expense... Read More

Topics: Cafeteria Plans, Payroll

No More Pre-Tax Premiums for Individual Insurance Policies?

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Over the years we have seen some employers, particularly small employers, choose to provide health coverage to their employees by paying all or part of the premium for individual insurance policies that the employees have obtained. Under an old IRS revenue ruling, Rev. Rul. 61-146, that type of premium subsidy... Read More

Topics: Cafeteria Plans, Compensation Questions, Health Care Reform, Health Plan, Payroll, Welfare Plans