Tag Archives: Fringe benefits

Two Transit Parity Bills Languish in Congress

Despite two transit parity bills introduced so far this year on Capitol Hill, Congress so far has made no indication it will extend the mostly non-controversial proposal to equalize the tax breaks for qualified parking and mass transportation and vanpool…

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Bill Making Transit Parity Permanent to Be Introduced

A bill to restore parity between mass transit and qualified parking benefits will be introduced in the U.S. House of Representatives by Del. Eleanor Holmes Norton, D-D.C., she announced Feb. 10. The limits, dictated by tax Code Section 132, have…

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Standard Fare Levels for Corporate Aircraft Lowered for First Half of 2015

The federal government lowered the rates used by employers to calculate how much to add to the taxable wages of employees who use a corporate jet for non-business use, for the first half of 2015. The rates — known as…

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Few Will Benefit from Retroactive Increase in Transit Exclusion

Only a limited number of employees may benefit from federal legislation that retroactively extended parity between qualified parking and transit benefits, based on new IRS guidance. Notice 2015-2 instructs employers on applying a retroactive tax exclusion to commuters who used…

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Worst Form of Plan ‘Leakage’ Pinpointed

Which is worst for a participant’s 401(k) savings: (a) plan loan defaults; (b) hardship withdrawals; or (c) cashouts upon job change? It turns out to be (c), especially for young employees and about one-fifth of those in the lowest income…

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Thousands of 401(k)s Fail Nondiscrimination Tests

Thousands of 401(k) plans failed their recent IRS nondiscrimination testing and had to return excess contributions to highly compensated employees because of imbalanced retirement plan coverage, according to research by a 401(k) advisory firm. Almost 60,000, or about 12 percent,…

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Texas, California Participants Top 401(k) Plan Loan Use

A study by Fidelity Investments of 13 million 401(k) investors across U.S. metropolitan regions pinpointed the cities where plan loans are most heavily used. The analysis found the greatest percentage of participants with outstanding plan loans, at 33 percent, in…

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Organization Strategy Must Underlie Health Reform Decisions

How a company complies with health care reform should be determined by what kind of employer it is, how exclusive its workforce is, and how important its benefit package is seen as an aid to recruitment and retention. Only after…

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Latest Data Shows Rise in 401(k) Assets; Equities Still Dominate

The average 401(k) account balance at the end of 2012 was 8.4 percent higher than the year before, but increased assets weren’t typical for all defined contribution plan participants studied, according to a December 2013 brief by the Employee Benefit…

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Wellness Plans Discriminate, Union Official Says

Wellness benefits have exploded in the past decade because they purportedly make employees healthier and save employers money, but they have found a detractor in at least one labor union.  John Borsos, secretary-treasurer of the National Union of Healthcare Workers,…

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