Reasons for an employer to improve employee benefits

Posted Leave a commentPosted in Employee Benefits, Small Business

Most of my employee benefit comments focus on effects to the employee. This post briefly lists some of the advantages to the employer. Shows that the employer is ‘in tune’ with employees’ lives. Helps to attract and retain good employees. Employees making decisions on employment offers often overweight the importance of employee benefit issues vs. […]

20 Easy Benefit Plan Boosts

Posted Leave a commentPosted in Employee Benefits, Financial Planning, Small Business

20 Simple and Inexpensive Things You Can Do to Improve Your Firm’s Employee Benefit Plan   There are likely plenty of easy ways to make your employee benefit plan dollars go further: Host an occasional, informal and voluntary on-site meeting where employees can ask an independent adviser questions about their benefits. Host occasional, informal and […]

New way to pay student loans – tax free!

Posted Leave a commentPosted in 401(k), education, Employee Benefits

I’ve been practicing in the employee benefits field for 37 years and I can’t remember being as surprised as I was reading IRS Private Letter Ruling 201833012 released on last Friday. Never before has there been any tax advantage to student loan payments (typically made to an outside financial company) through connection with an employer plan. […]

HRA for spouse of business owner?

Posted Leave a commentPosted in Affordable Care Act, Employee Benefits, Health Insurance, Small Business

Can a business with only one employee – the spouse of the sole proprietor – be eligible for a Health Reimbursement Arrangement? I can not give that assurance but at least one popular tax speaker says that he can and you are welcome to rely on that advice. In this situation, I would prefer to […]

2018 Changes to Employee Benefit Plans

Posted Leave a commentPosted in Employee Benefits, Taxes

This article lists the primary changes triggered by the Tax Cuts and Jobs Act that have an impact on employee benefit plans. They are listed here roughly in the order of impact on small business employers. For example, health benefits changes and work-related travel change impacts most businesses ,whereas compensation above $1 million affects fewer […]

More Q&As on the Qualified Small Employer Health Reimbursement Arrangement (QSERHA)

Posted Leave a commentPosted in Employee Benefits, Health Insurance, Small Business

I normally offer a free mini-consultation by telephone for prospective clients1. This allows us to get to know each other, prove that value provided will exceed the costs incurred, and lower risks of misunderstanding and miscommunication. But this week I had trouble connecting with a small business owner in California so we agreed to a […]

Sample deferred compensation plan

Posted Leave a commentPosted in Employee Benefits, nonprofit, Tax Planning

Following is an annotated copy of the model truck language for a deferred compensation plan under  Rev. Proc. 92-64. TRUST UNDER ____ PLAN OPTIONAL (a) THIS AGREEMENT MADE THIS ___ DAY OF ___, BY AND BETWEEN ____ (COMPANY) AND ____ (TRUSTEE); OPTIONAL (b) WHEREAS, COMPANY HAS ADOPTED THE NONQUALIFIED DEFERRED COMPENSATION PLAN(S) AS LISTED IN […]

2018: The year for a Health Reimbursement Arrangement (HRA)

Posted 3 CommentsPosted in Accounting, Affordable Care Act, Employee Benefits

Summary: Small businesses with middle-income employees may use a Health Reimbursement Arrangement t(HRA) o help cover out-of-pocket medical costs or individual insurance premiums as one of the easiest ways to cut 2018 taxes at minimal administrative and setup cost. The Tax Cuts and Jobs Act increases the incentive for middle-income workers to look for alternate ways […]

Unreimbursed partnership expenses revisited

Posted Leave a commentPosted in Accounting, Employee Benefits, Law firm, Small Business, Tax Planning

The Tax Cuts and Jobs Act triggers changes to the tax treatment of unreimbursed partnership expenses for 2018. Partnerships should revisit their policies to ensure that partners and employees maximize tax savings under the new law. Under former law a partner could deduct the expenses of the partnership on his or her individual income tax […]