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2017 Values for Employer-Provided Vehicles Released

The IRS has released the maximum vehicle values for 2017 that taxpayers need to determine the value of personal use of employer-provided vehicles under the IRS’s special valuation rules. 2017 Maximum Vehicle Values The maximum value of employer-provided vehicles first made available to employees for personal use in calendar year 2017, for which the vehicle cents-per-mile valuation rule provided under IRS Regulation section 1.61–21(e) may be applicable, is $15,900 for a passenger automobile, and $17,800 for a truck or van. The maximum value of employer-provided vehicles first made available to employees for personal use in calendar year 2017,...

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How to Determine ALE Status

ALEs Must Comply with ACA's 'Pay or Play' Provisions An employer which has at least 50 full-time employees, including full-time equivalent employees (FTEs), on average during the prior year is generally considered an "applicable large employer" (ALE) under the Affordable Care Act (ACA) for the current calendar year. These employers are subject to the ACA's employer shared responsibility ("pay or play") provisions and information reporting requirements (Forms 1094-C and 1095-C). Here are the steps to determine whether an employer is an ALE: Determine how many full-time employees the employer had in each month of the prior year. For this...

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Determining ‘Full-Time Employees’ Under ‘Pay or Play’

Designation Determined by Hours Worked, Not Employer Classification The employer shared responsibility provisions of the Affordable Care Act (also known as "pay or play") require applicable large employers (ALEs)—generally those with at least 50 full-time employees, including full-time equivalent employees (FTEs)—to offer affordable health insurance that provides a minimum level of coverage to full-time employees (and their dependents) or pay a penalty tax if any full-time employee is certified to receive a premium tax credit for purchasing individual coverage on the Health Insurance Marketplace. The Internal Revenue Service (IRS) recently addressed a question regarding how an employer's classification of employees as...

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Reminder: Certain Small Employer HRAs Now Exempt From ACA’s Market Reforms

QSEHRAs Must Satisfy Certain Requirements As a reminder, a recent law allows certain small employers to offer new "qualified small employer health reimbursement arrangements" (QSEHRAs) to reimburse employees for qualified medical expenses, including individual health insurance premiums. Background Under prior agency guidance, stand-alone HRAs (except for retiree-only HRAs and HRAs consisting solely of excepted benefits) and HRAs used to purchase coverage on the individual market were considered group health plans that did not comply with certain market reforms of the Affordable Care Act (ACA). As a result, these HRAs were subject to a $100 per day excise tax per applicable employee under the...

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How to Correct Form 1094 & 1095 Errors

To avoid potential noncompliance penalties, employers should confirm the accuracy of all Affordable Care Act (ACA) information returns and correct any errors as soon as possible with both the IRS and their employees. Errors on Forms 1094-C and 1095-C Forms 1094-C and 1095-C are used by applicable large employers to satisfy their reporting obligations. To correct information on the paper version of the original Authoritative Transmittal Form 1094-C, employers should take the following steps: Prepare a new authoritative Form 1094-C including the correct information Enter an "X" in the CORRECTED checkbox at the top of the form File the standalone corrected authoritative Form 1094-C with the...

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Hiring and Managing Seasonal Employees

With the summer hiring season approaching, employers should begin thinking about how best to hire and manage seasonal employees. Employers who do not dedicate time to these critical steps risk having to face disgruntled employees, unhappy customers, and even legal violations. To learn some best practices for hiring and managing seasonal employees, please watch the video below. ...

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3 Tax Record-Keeping Tips for Employers

Keeping good records not only makes tax filing easier and faster, but it can also help you monitor the progress of your business, prepare your financial statements, and support items reported on your tax returns. Here are three simple tips from the IRS to help you get organized: 1. Save Certain Business Records The following are some of the types of records you should keep: Gross receipts are the income you receive from your business. You should keep supporting documents that show the amounts and sources of your gross receipts. Purchases are the items you buy and resell to customers. Your supporting documents should...

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Look at your employees with cybersecurity in mind

Today’s businesses operate in an era of hyper-connectedness and, unfortunately, a burgeoning global cybercrime industry. You can’t afford to hope you’ll luck out and avoid a cyberattack. It’s essential to establish policies and procedures to minimize risk. One specific area on which to focus is your employees. Know the threats There are a variety of cybercrimes you need to guard against. For instance, thieves may steal proprietary or sensitive business data with the intention of selling that information to competitors or other hackers. Or they may be more interested in your employees’ or customers’ personal information for the same reason. Some cybercriminals may...

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How can you take customer service to the next level?

Just about every business intends to provide world-class customer service. And though many claim their customer service is exceptional, very few can back up that assertion. After all, once a company has established a baseline level of success in interacting with customers, it’s not easy to get to that next level of truly great service. But, fear not, there are ways to elevate your game and, ultimately, strengthen your bottom line in the process. Start at the top As is the case for many things in business, success starts at the top. Encourage your fellow owners (if any) and management team to...

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Offer plan loans? Be sure to set a reasonable interest rate

Like many businesses, yours may allow retirement plan participants to take out loans from their accounts. Such loans are governed by many IRS and Department of Labor (DOL) rules and regulations. So if your company offers plan loans, your plan document must comply with current laws — including setting a “reasonable” interest rate. Agency perspectives Neither the IRS nor DOL provides a set percentage for plan sponsors to use. Yet both require the rate to be “reasonable.” The IRS asks if the interest rate is similar to local interest rates and to what local banks charge individuals for similar loans with similar...

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