In May, the IRS issued a private letter ruling to an individual taxpayer regarding the deductibility of 23andMe’s at-home DNA test kits under section 213(d) of the Code, which permits the deduction of medical expenses. In the ruling, the IRS determined that an allocable portion of the purchase price may be treated as a deductible medical expense … Continue Reading
(This article was originally published in Law360 and has been modified for this blog.) Employers commonly offer a wide array of employee benefit plans and programs. In addition to traditional staples, many employers today offer an employee assistance program, dependent care, accident insurance and even pet insurance. In an increasingly competitive labor market, offering a … Continue Reading
Taxpayers may treat the $6,900 original annual contribution limit for family coverage to health savings accounts (“HSAs”) as the limit for 2018, according to IRS guidance released on April 26, 2018 (press release; IRS Rev. Proc. 2018-27). Employers that took steps to comply with the reduced limit may need to take action. As discussed in … Continue Reading
For taxable years starting after December 31, 2017 and before January 1, 2020, the Tax Cuts and Jobs Act of 2017 adds a new Section 45S to the Internal Revenue Code that provides a tax credit for businesses offering paid family and medical leave (“F&M Leave”). The IRS recently issued FAQs that begin to answer questions … Continue Reading
Long considered to be at the forefront of providing benefits to employees who take family and medical leave, California recently enacted a new law aimed at increasing the benefits paid out to employees who take time off to care for an ill or injured family member or for new child bonding. Meanwhile, San Francisco’s Board … Continue Reading
After years of confusing and sometimes contradictory signals (described in previous posts here and here), the Equal Employment Opportunity Commission has finally proposed a regulation explaining how employment-based wellness programs can satisfy the Americans with Disabilities Act.… Continue Reading
The tax extenders legislation (formally called the “Tax Increase Prevention Act of 2014“) signed into law on December 17 included a one-year extension of “parity” for the limits on tax-exempt mass transit and parking benefits. The change retroactively increases the limit on pre-tax mass transit benefits, which means that it affects the information that must … Continue Reading
The Equal Employment Opportunity Commission has issued new enforcement guidance explaining when an employer’s policies affecting pregnant employees might violate federal law. The new guidance appears in an updated chapter of the EEOC’s enforcement manual, and in a related set of questions and answers. Among other topics, the new guidance addresses the rights of pregnant … Continue Reading
If an employee assistance program (“EAP”) provides counseling for substance abuse, stress, depression, and similar health problems, the Labor Department and IRS regard it as a group health plan. Unless the EAP qualifies for an exception, it will have difficulty complying with the group health plan coverage requirements and other mandates. Recent guidance from the … Continue Reading
Starting in 2014, most individuals must maintain minimum essential health coverage or pay a penalty. (Please see our post here for a description of the health coverage mandates that apply to individuals and their families.) The Internal Revenue Service recently issued a proposed regulation clarifying the minimum essential coverage rules and other aspects of the … Continue Reading
The IRS issued a notice on October 31 modifying the long-standing “use-or-lose” rule that applies to health flexible spending arrangements (“Health FSAs”). The new rule permits participants to apply up to $500 of unused Health FSA contributions to pay for expenses incurred in the next plan year, if the employer amends its Health FSA to permit … Continue Reading
The IRS issued a notice today setting forth special procedures by which employers may claim a refund of FICA taxes that were paid on employee benefits solely because of the application of the Defense of Marriage Act (“DOMA”). Section 3 of DOMA prohibited the IRS from recognizing same-sex marriages for federal tax purposes and was … Continue Reading
The IRS issued guidance today defining same-sex marriage for purposes of federal tax rules. Following the Supreme Court’s decision in United States v. Windsor last June invalidating section 3 of the Defense of Marriage Act (DOMA), federal law no longer limits the definition of marriage to opposite sex spouses. However, the Windsor decision did not … Continue Reading
Earlier today in United States v. Windsor, the Supreme Court struck down section 3 of the federal Defense of Marriage Act (“DOMA”). Section 3 of DOMA limits the definition of marriage for purposes of federal law to marriage between individuals of the opposite sex. The Court held that DOMA deprives same sex couples of due … Continue Reading
Our colleagues at InsidePrivacy recently observed that employers are increasingly giving employees access to work email and apps on their personal devices. In a recent survey, 38 percent of CIOs said that their organizations will stop providing laptops, smartphones, and tablets to workers by 2016. As our colleagues noted, Bring Your Own Device (“BYOD”) policies … Continue Reading
The United States government narrowly avoided falling over the so-called “fiscal cliff” by enacting the American Taxpayer Relief Act of 2012 (“ATRA”). ATRA’s impact on tax rates has been covered extensively in the national media. ATRA also included several employee benefit provisions that are of interest to employers and their employees. … Continue Reading
Regardless of how the so-called fiscal cliff is “resolved” – and whether this occurs before the end of 2012 – the expiration of educational assistance and adoption assistance tax provisions at the end of this year is already causing headaches for employers who provide (or hope to provide) their employees with these tax-advantaged benefits. However, … Continue Reading
The IRS recently announced tax relief designed to encourage Hurricane Sandy recovery efforts. The tax relief programs that have been announced are similar to programs offered in response to Hurricane Katrina in 2005, including non-taxable employee leave donations and tax-free relief payments to employees. … Continue Reading
