May 2010
Now that Congress has passed landmark health care reform package, much work needs to be done in dealing with new requirements. While the end result of the legislative process is necessarily health care related, the tax law plays a major role in its implementation. From the tax credits and subsidies used to expand health coverage, to the many penalties, fees and surtaxes designed to pay for it, the Tax Code is front and center. Read more»
In an effort to confront high unemployment, the Hiring Incentives to Restore Employment (HIRE) Act provides incentives for hiring and retaining unemployed workers. Under the HIRE Act, a qualified employer’s 6.2 percent share of OASDI Social Security tax liability is forgiven for new hires, and a general business credit is allowed for each retained worker that satisfies a minimum employment period. Read more»
Prior to 2010, the income limits on both kinds of IRAs have prevented higher income taxpayers like you from making deductible contributions to traditional IRAs, or a contribution to a Roth IRA. Although you could make nondeductible contributions to a traditional IRA, the tax benefits were limited (i.e., no current deduction, the tax on the IRA income is deferred rather than eliminated, and minimum distributions are required). Read more»
March 2010
Given the complexity of employee benefit plan administration, it comes as no surprise that errors occur. Unfortunately, if left unresolved, these errors can lead to sanctions — and even to a plan losing its tax-favored status. If compliance errors are discovered, consultation with outside professionals will likely be necessary to ensure that appropriate steps are taken to correct the errors Read more»
Employee benefit plan sponsors often outsource some portion of their plan’s processing to outside service providers. These third party administrators (TPAs) include bank trust departments, insurance companies, data processing service bureaus or benefits administrators. Some of the more commonly outsourced activities include payroll and participant activity recordkeeping. Read more»
