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| Of all the retirement plans available to small business owners, the SIMPLE plan is the easiest to set up and the least expensive to manage.These plans are intended to encourage small business employers to offer retirement coverage to their employees. SIMPLE plans work well for small business owners who don’t want to spend a lot of time and pay high administration fees associated with more complex retirement plans. (more…) |
Archive for the ‘Employee Benefit Plans’ Category
A SIMPLE Retirement Plan for the Self-Employed
Thursday, September 6th, 2012Expanded Discloures for Employers Particpating in Multiemployer Plans
Thursday, August 23rd, 2012|
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| The Financial Accounting Standards Board has issued an Accounting Standards Update (“ASU”) that changes how employers disclose their involvement in multiemployer plans. Private companies participating in multiemployer pension plans are subject to significantly expanded reporting requirements, related to those plans, for fiscal years ending after December 15, 2012. (Publicly traded companies were required to adopt this change one year earlier.) These disclosures must be made in calendar 2012 financial statements and will impact many companies in the construction industry, especially union contractors, due to significant participation in these plans. (more…) |
The IRS Is Paying Attention to Your Plan
Thursday, June 21st, 2012|
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| Safe Harbor 401(k) plans, designed to take advantage of an exemption from the rules barring discrimination in favor of highly compensated employees (HCE’s), are an effective tool for HCE’s to defer the maximum amount without recognizing excess contributions in a future year. For employers to qualify for a Safe Harbor 401(k) plan, they must fully match the first 3% of salary and half of the next 2% of pay that non-HCE defer, or firms can contribute at least 3% of pay for all eligible non-HCE’s. Because so many employers are using safe harbors, the IRS is scrutinizing these plans to make sure the rules are followed.Plans with uncollectible loans or leases are also on the IRS radar. They are looking to make sure affected plans are properly valuing their assets and complying with the rules.
If your plan has real estate investments or participant loans, watch out for Uncle Sam. He is interested in making sure the real estate is valued at fair market value and the value is well documented. Participant loans must meet the terms of the plan and be properly documented. Mistakes with Participant loans can lead to prohibited transactions. |
Employers Health Care Benefits Reporting Requirements
Thursday, May 5th, 2011|
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| Under the Affordable Health Care Act, employers will be required to report the value of health care benefits. For 2011, employers may voluntarily report the value of health care benefits for each employee. This amount will appear on the new 2011 form W-2 to be issued in 2012. This is a reporting item and will not affect taxable income. For 2012, the reporting is required for all employers except small employers filing fewer than 250 W-2 forms.
If you have questions about how to do this, please contact our office. |
2011 Changes to Flexible Spending
Tuesday, October 5th, 2010|
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The Affordable Care Act, enacted in March, established a new uniform standard that, effective January 1, 2011, applies to Flexible Spending Arrangements (FSAs) and health reimbursement arrangements (HRAs). Under the new standard, the cost of an over-the-counter medicine or drug cannot be reimbursed from the account unless a prescription is obtained. The change does not affect insulin, even if purchased without a prescription, or other health care expenses such as medical devices, eye glasses, contact lenses, co-pays, and deductibles. The new standard applies only to purchases made on or after January 1, 2011, so claims for medicines or drugs purchased without a prescription in 2010 can still be reimbursed in 2011, if allowed by the employer’s plan. |
Watch Out for IRS 401(k) Plan Questionnaires
Tuesday, June 22nd, 2010|
Daniel Weintraub, CPA, Partner |
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The Internal Revenue Service (IRS) has begun sending out questionnaires and letters to 1,200 randomly selected 401(k) plan sponsors. Employee Plan Examinations previously conducted by the IRS indicate that 401(k) plans are by far the most non-compliant plan type in the retirement plan universe. These plans have a significant impact on the health of private retirement in America and make up over 60% of the retirement plan universe. It is important that they maintain the highest level of compliance possible: the Questionnaire is intended to assist the IRS in identifying compliance areas where additional education, guidance and enforcement are needed. |
