Insights
Employers: In 2023, the Social Security wage base is going up
The Social Security Administration recently announced that the wage base for computing Social Security tax will increase to $160,200 for 2023 (up from $147,000 for 2022). Wages and self-employment income above this threshold aren’t subject to Social Security tax. Basics about Social Security The Federal Insurance Contributions Act (FICA) imposes two taxes on employers, employees…
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Plan now to make tax-smart year-end gifts to loved ones
Are you feeling generous at year end? Taxpayers can transfer substantial amounts free of gift taxes to their children or other recipients each year through the proper use of the annual exclusion. The exclusion amount is adjusted for inflation annually, and for 2022, the amount is $16,000. The exclusion covers gifts that an individual makes to…
Read More401(k) limit increases to $22,500 for 2023, IRA limit rises to $6,500
The Internal Revenue Service (IRS) announced on Friday, October 21st that the amount individuals can contribute to their 401(k) plans in 2023 has increased to $22,500, up from $20,500 for 2022. The IRS today also issued technical guidance regarding all of the cost of living adjustments affecting dollar limitations for pension plans and other retirement-related…
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2023 Health FSA Contribution Cap Rises to $3,050
By Drema Foster, PAFM Employees can put an extra $200 into their health care flexible spending accounts (health FSAs) next year, the IRS announced on Oct. 18, as the annual contribution limit rises to $3,050, up from $2,850 in 2022. The increase is double the $100 rise from 2021 to 2022 and reflects recent inflation. If the employer’s…
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Is Your Paycheck Protection Program Loan Forgiven?
By: Saundra Uy CPA, CVA, CGMA Your business may have been one of the many that took advantage of the Paycheck Protection Program (PPP) Loans. If so, has your business applied for and received PPP Loan forgiveness? If not, read on for more information on applying for PPP Loan Forgiveness to avoid repayment. Of the…
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Generation-Skipping Transfer Tax (GSTT)
What is it? The generation-skipping transfer tax is a federal tax on a gift or inheritance that prevents avoiding estate taxes by skipping a generation. Before this tax was introduced in 1976, wealthy individuals could legally make gifts or bequeath property to their grandchildren without paying any federal estate taxes. The 1976 law closed this…
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2022 AFFORDABLE CARE ACT REPORTING DEADLINES AND POTENTIAL PENALTIES
The Patient Protection and Affordable Care Act (PPACA or ACA) requires certain employers to report to the IRS annually regarding the health care coverage they offer to full-time employees. Under Section 6056 of the Internal Revenue Code, an Applicable Large Employer (ALE) must report information on Form 1095-C that discloses if an employer is subject…
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Navigating the Updated Clean Vehicle Tax Credits
When President Biden signed the Inflation Reduction Act bill into law in August 2022, the Electrical Vehicle (EV) tax credit underwent immediate and long-term changes. Knowing what is coming and how to work with your clients under contract and future customers will be paramount to providing exemplary service and accurate information. The new clean…
Read MoreDOL Proposed Rule: Employee or Independent Contractor Classification
On October 11, 2022, the US Department of Labor (DOL) announced the publication of a notice of proposed rulemaking (NPRM), Employee or Independent Contractor Classification Under the Fair Labor Standards Act in the Federal Register. The proposed rule is scheduled to be officially published in the Federal Register on October 13th and the public will…
Read MoreI-9 audits rise by 300%
If you haven’t reviewed your company’s I-9 forms and processes, now is the time. Employer I-9 audits conducted by the Immigration and Customs Enforcement (ICE) spiked by 300% in recent years. Related immigration arrests (of employees and managers) jumped by 600%. Our HR Consulting team has the knowledge and expertise to help you and your…
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