Fringe benefits - transit, discounts, other |
Highly-Paid Boston Public Employees Enjoying Free Commutes in Taxpayer-Funded Cars
"In all, 122 of the 199 city workers with take-home vehicles make more than $100,000 a year, including nine who earned over $200,000. At least 36 employees with take-home cars live outside the city, including officials who reside in Duxbury, Marshfield, Hingham, Norwell and Framingham, among other suburban towns." (BostonHerald.com)
Paid Sick Leave is 'Basic Human Right,' Senator Says
"Senate HELP Committee Chairman Tom Harkin (D-IA) held a hearing this week on the Healthy Families Act ... which would require employers to offer 56 hours of paid sick leave. Republicans ... argued that it would be counterproductive and make it harder for employers who choose to provide paid leave to continue to do so, particularly in the current economy. [The chairman], however, disagreed, characterizing 'paid leave [as] a basic human right' and he argued that 'we need a one-size-fits-all-approach that ... sets a floor that we won't let people go below.'" (HR Policy Association)
A Look at Legally Required Accommodations for Pregnant Women in the Workplace
"Just seven states -- Connecticut, Hawaii, Louisiana, Alaska, Texas, Illinois and California -- have some sort of pregnancy accommodation legislation; New York is in the process of trying to pass a law. California's is among the most protective for pregnant women: it guarantees the right to job-protected -- albeit unpaid -- leave and mandates a pregnant woman's right to be transferred to another position if medically necessary." (TIME)
[Guidance Overview] Hey Boss, Buy Me a Bike? A Look at Unusual Qualified Transportation Fringe Benefits
"For employees who commute to work by bike, a qualified transportation plan can be set up to reimburse reasonable expenses incurred by employees for the purchase of a bicycle and bicycle improvements, repair, and storage. The amount which can be reimbursed is limited annually to $20 per month multiplied by the number of qualified bicycle commuting months during the year." (The Pension Protection Act Blog)
Working Moms Taking Less Maternity Leave
"One in four (26%) working moms who have had a child in the last three years reported they did not take the full maternity leave allowed by their company. One in 10 took two weeks or less.... As more moms assume the sole or primary breadwinner role in their households, they�re feeling increasingly torn between providing financial security for their families and having quality time at home[.]" (PLANSPONSOR.com)
New Jersey Politicians Grandfather Own Benefits But Limit Those of New Workers
"[Figures obtained as part of a Star-Ledger analysis of sick and vacation time records for lawmakers and other public employees across the state] show that politicians can reap generous rewards from the same system they are charged with policing. The payouts also take sizable chunks out of local budgets that are already under duress." (nj.com)
[Guidance Overview] IRS Proposes Regs Allowing Deduction for Some Employee Local Lodging Expenses
"Despite the characterization of local lodging as a personal expense, employers could still take a compensation deduction for local lodging. However, the working condition fringe rules (for lodging provided in-kind) and the accountable plan rules (for lodging reimbursements) could not be used to provide local lodging on a tax-free basis when the exception created by Notice 2007-47 for temporary lodging did not apply. The proposed regulations provide more certainty for employers wanting to provide local lodging on a tax-free basis." (Thomson Reuters/EBIA)
Enhance Incentives for Employees Through 'Individualizing'
"What incentives and rewards most motivate workers to do their best? ... The latest answer is 'individualization,' according to [a study] by St. Louis-based Incentive Research Foundation, which analyzed existing research, scanned incentive industry and business publications, and sought input from industry leaders." (Human Resource Executive Online)
[Guidance Overview] Perk Available Only to Retirees Was Not a 'Pension Plan' Subject to ERISA Requirements
"Plaintiffs brought an enforcement suit against defendants under [ERISA alleging] that defendants' practice of offering reimbursements for telephone services to retirees who lived outside of defendants' service region constituted a 'pension plan' under ERISA." (Justia.com)
Congress Bypasses Opportunity to Liberalize Commuter Reimbursement Cap
"[The House recently] approved a short-term, 90-day extension of a smaller transportation bill that did not contain the provision equalizing the pre-tax benefit cap for public transit costs and parking costs. Accordingly, the limit for employees who use public transportation remains at $125 per month versus the $240 for employees who drive and pay for parking." (HighRoads)
The Future of Absence and Disability Management, Part 2
"[The white paper] illustrates how on-site consultants can play a key role in helping employers integrate early disability reporting and disability duration guidelines into return-to-work programs." (The Standard)
GSA Boosts Mileage Reimbursement Rate for Federal Employees
"The General Services Administration is increasing the 2012 mileage reimbursement rate for federal employees who use their private vehicles for work, according to the agency. The rate for cars will be 55.5 cents per mile, an increase of 4.5 cents over the current rate." (Government Executive)
Massachusetts Legislature Eyes Mandatory Paid Sick Leave
"The Massachusetts Legislature's Joint Committee on Health Care Financing is considering [a requirement for] companies with fewer than six employees to provide unpaid sick time, and all other employers to offer paid sick time." (ML Strategies, LLC)
Where to Get Social Security Help
Good article for use in helping employees with financial planning; includes several hypertext links to federal resources. "Many financial advisers have expertise in Social Security rules, including some who once worked at the Social Security Administration. Many are fee-based, like accountants, or provide the help as part of their financial planning or wealth-management practice. There also are some sophisticated online tools that let people crunch their own numbers under various scenarios." (The Wall Street Journal, by Ellen E. Shultz)
Is Mandatory Paid Sick Leave the Prescription for Healthy Workers, Healthy Businesses and a Healthy New York City Economy?
"While it is difficult to dispute that workers should be able to earn paid sick time off, what's often left out of the discussion is that paid sick time actually makes our economy stronger, overall. When workers report to work sick, they aren't particularly productive. In many instances, they risk getting their coworkers sick, compounding the lost productivity. They can even spread the illness to customers." (Daily News)
Ohio Spent $96 Million on Unused Paid Time Off in 2010-11
"The payouts are late-career incentives for hardworking employees who have jobs where it's difficult to take time off, such as prisons or health care centers, said ... a spokeswoman for the Ohio Civil Service Employee Association, which represents 30,000 workers." (MarionStar.com)
Some Companies Turning to Personal Concierge Services in Effort to Improve Productivity
"The idea is to let someone else plan employees' trips -- both for work and leisure -- find them a plumber or a dog sitter, or choose where to take their car for an oil change." (The New York Times; free registration required)
Senate Gives Public Transportation A Boost
"Advocates for commuter transportation systems have argued that there is no justification for treating employees who drive to work better than those who use public transportation. This argument seems especially compelling in these days of increasing gas prices." (Porter Wright Morris & Arthur LLP)
Senate Supports Boosting Commuter Subsidy
"The maximum tax-free subsidy that employers, including the federal government, can pay for their workers to use public transit in their commuting would nearly double to $240 a month under a provision in the transportation bill the Senate passed [March 14, 2012]." (The Washington Post; free registration required)
Compromise May Clear Way for Massachusetts. Bill Seeking Paid Sick Days
"Advocates for a bill requiring Bay State businesses to offer paid sick days to their workers hope new compromise legislation exempting the state's smallest companies will break a years-long logjam, but critics of the bill say it will cost nearly 12,000 jobs." (Lowell Sun)
Employee Benefits Can be Written Off by Employer
"Remember, when extending fringe benefits it is important to note that discrimination rules apply. If benefits are extended to only highly compensated employees, then all or part of the benefit must be included in the employee's W2. If an employee pays part of the cost of a fringe benefit, this amount must be included in the employee's pay. Not all fringe benefits are exempt from taxation." (Fox Business)
Commuting by Public Transit on the Rise
"Employees who take public transportation to work may benefit from a tax break, but only if their employer sponsors a qualified transportation fringe benefit ... plan under Code Section 132." (Thompson)
Chart: Employer-Provided Sick Leave Benefits, March 2009
"Among full-time workers who participated in employer-provided paid sick leave plans in March 2009, more than two-thirds (68 percent) were in plans in which they received a fixed number of sick leave days per year. Of the remaining third, 22 percent received paid sick leave through a consolidated leave plan, and 10 percent were in plans that operate on an 'as-needed basis.'" (Bureau of Labor Statistics)
[Guidance Overview] Cars, Trucks and Vans: Deduction Limits Out for 2012
"Employers will now be able to calculate the depreciation of vehicles -- passenger cars, trucks and vans that they provide to employee as a fringe benefit -- that they first put into service in calendar year 2012, since the IRS has released the new depreciation deduction limits." (Thompson)
[Official Guidance] IRS Rev. Proc. 2012-23 on Automobile Depreciation Deductions and an Updated Table of Amounts to Be Included in Income (PDF)
"This revenue procedure provides: (1) limitations on depreciation deductions for owners of passenger automobiles first placed in service by the taxpayer during calendar year 2012, including separate tables of limitations on depreciation deductions for trucks and vans; and (2) the amounts that must be included in income by lessees of passenger automobiles first leased by the taxpayer during calendar year 2012, including a separate table of inclusion amounts for lessees of trucks and vans." (U.S. Internal Revenue Service)
[Guidance Overview] 2012 Automobile Depreciation Limits Released
"The IRS on Friday issued the 2012 inflation adjustments to the depreciation limitations and lease inclusion amounts for certain automobiles under Sec. 280F[.]" (Journal of Accountancy)
More Governments Look to Require Small Businesses to Provide Time-Off Benefits
"Supporters are concerned by signs that small employers have begun cutting back on paid sick-day benefits. About 32% of businesses with fewer than 50 employees provided paid time off specifically for illness in 2011, compared with 39% in 2009, according to the Society for Human Resource Management in Alexandria, Va." (The Wall Street Journal)
Telework Week 2012 Encourages More Work from Home
"The second annual Telework Week, taking place March 5-9, 2012, encourages businesses, government agencies and individuals to telecommute. Individuals and organizations can visit Telework Exchange, a public-private partnership, to calculate potential commuter cost and environmental savings and to pledge to telework." (Society for Human Resource Management)
Paid Sick Leave: Prevalence, Provision, and Usage among Full-Time Workers in Private Industry
"BLS data from the March 2009 National Compensation Survey (NCS) show that full-time private industry workers who had a paid sick leave plan with a fixed number of sick leave days earned per year did not, on average, use all of the paid sick leave they were provided. The data also show that usage varies among different industry groups." (U.S. Bureau of Labor Statistics)
[Guidance Overview] So You Provide Meals for Your Employees. Is the Chef's Salary Part of the 'Direct Cost'?
"One of the keys to this determination is comparing the cost of providing the meals to the revenue the operation brings in. There are 'direct' and 'indirect' costs, the latter of which do not go toward the calculation of the cost-to-revenue ratio that determines whether you are providing a de minimis benefit (and therefore one that does not have to be included in employees' taxable wages)." (SmartHR)
Prospects for Boost in Mass Transit Tax Break Dim
"While the Senate Finance Committee previously approved a highway funding bill that includes a provision that would allow employees to reduce their salaries by up to $240 a month through the end of 2012 to pay for mass transit expenses, Senate Democratic leaders have been unable to muster sufficient support to bring up the broader bill for a vote by the full Senate." (Business Insurance)
Your Perks Aren'T Motivating Your Employees
"Whatever you call it, [recent] authors seem to feel that the larger environment, including the apparent worth of the work itself and the interaction between team members, is far more essential to motivation than gym memberships or an office espresso machine. These perks are nice, of course, but they're like sprinkles -- they're of little interest to anyone if you don't have the cupcake of a good corporate culture to add them to." (Inc.)
Employee Perks That Don't Work
"[W]hile it is great to see that employers are concerned about the well-being of their employees, the unfortunate reality is that many businesses are wasting huge sums of money on work-life initiatives that don't work for the majority of their employees, or do much of anything to enrich the broader corporate culture." (Fast Company)
Chicago's City Colleges Take Charge of Leave, Insurance
"The City Colleges of Chicago has ended its practice of allowing em??ployees to 'cash out' sick days when they quit their jobs. In addition, the community college system has also capped the number of sick days an employee can accumulate at 200. The policy applies to administrators and nonunion employees hired after Jan. 1, 2012, and is a first change resulting from a comprehensive review of benefits ordered by the school's chancellor last fall." (Business Management Daily)
Occasionally' Providing Meals to Employees ? What Does it Mean for Employer Tax Compliance?
"How can an employer best determine whether employer-provided meals qualify as de minimis fringe benefits under the federal tax code? The employer must take into account how frequently the meals or meal money are provided, either on an employee-by-employee basis, or on the basis of the work force as a whole." (SmartHR Manager / Thompson)
[Opinion] Viewpoint: Strengthen Employee Loyalty with Corporate 529 Plans
"Making college savings easy and systematic can become a key differentiator for organizations that are committed to their employees' entire financial health." (SHRM )
Paid Sick Days for New York City Workers Would Lower Health Care Costs by Reducing Unnecessary Emergency Department Visits
"In New York City, 50 percent of working New Yorkers, or approximately 1,580,000 employees, lack access to paid sick days. This fact sheet reports findings from research by the Institute for Women's Policy Research (IWPR) on how increased access to paid sick days would improve both access to health care and health outcomes in New York City. The research also quantifies the savings gained by providing access to paid sick days to all workers, thereby preventing some emergency department visits in New York City." (Institute for Women's Policy Research)
New York State Senate Passes Bill to Restore Commuter Tax Benefit
"The legislation would fully restore the state's monthly pre-tax transit benefit, which would be $240 for 2012, that was cut when the federal government did not approve an extension by the December 31, 2011 deadline. It would also create parity with the current federal and statepre-tax benefits which help offset parking costs for commuters who drive. That benefit increased to $240 on January 1st" (newsLI.com)
Chicago Public School Officials Cracking Down on Big Payouts for Sick Days
"[A new sick-day policy] will be proposed next week and apparently will end excessive sick-day payouts. The proposal follows a Feb. 3 Better Government Association report about a CPS policy that allows departing employees to pocket up to 325 unused sick days in cash on their way out the door." (Chicago Sun-Times)
Private Company Incentive Pay Practices Survey
"Respondents report increased usage of both short- and long-term incentive programs since 2007. Short-term incentive . . . usage has increased to 95% from 79%, while long-term incentive . . . usage has increased to 61% from 35%." (WorldatWork)
[Official Guidance] IRS Notice 2012-19: Determination of Foreign Housing Cost Amounts Eligible for Exclusion or Deduction for 2012 (PDF)
"This notice provides adjustments to the limitation on housing expenses for purposes of section 911 of the Internal Revenue Code ... for specific locations for 2012. These adjustments are made on the basis of geographic differences in housing costs relative to housing costs in the United States." (U.S. Internal Revenue Service)
Senate to Consider Reinstatement of Pre-Tax Transit Benefit Parity in Highway Bill
"A proposal to extend parity in qualified transportation fringe benefits is headed for a Senate vote as part of major highway legislation. The proposal . . . would continue to permit tax-free mass transit benefits at the same level as parking benefits ($240 per month) for all of 2012." (Mercer)
From Unlimited Burritos to On-Site Yoga, Boulder Firms Pile on Perks
"Natural Habitat Adventures in Boulder was voted the No. 1 place to work by Outside magazine two years in a row. The benefits -- which are some that 'Boulderites love,' according to founder Ben Bressler -- include four weeks of vacation plus two weeks of company-funded site inspections, which means a trip anywhere in the world. 'We ask them to tell us how the trip went and to check out the different lodges and things, but it's pretty much a vacation,' Bressler said." (Daily Camera)
Senate Panel Approves Mass Transit Benefit Contribution Increase
"The tax-favored status of an employee benefit tapped by those who use mass transit to get to and from work would be boosted under a provision in highway funding legislation approved Tuesday by a Senate panel." (Business Insurance)
IRS's Updated Version of Taxable Fringe Benefit Guide
"This publication offers helpful insight into the IRS's views regarding the taxation, withholding, and reporting requirements for many fringe benefits. And unlike many other IRS summaries, it includes citations to statutes, regulations, cases, and guidance that make it useful as a gateway reference." (Thomson Reuters/EBIA)
Sick Time Payouts Costing Chicago Teachers' Retirement System
"Since 2006, the district paid a total $265 million to employees for unused sick and vacation days, according to an analysis of payroll and benefit data obtained by the Better Government Association under the Illinois Freedom of Information Act, the Chicago Sun-Times reports." (PLANSPONSOR.COM)
Culture Key to Work-Life Programs: AOL Benefits Build Culture of Trust
"In the larger world of work-life and family-friendly programs, we have found that company culture is one of the main factors that determines the success of these programs and that, in turn, work-life programs can be a tool for a real cultural revolution." (Employee Benefit News)
Eight Discounted Perks Programs That Can Boost Employee Morale
"Employers sign up to offer the perk to their employees, and in turn their employees will receive a discount if they enroll in the service. It's a win-win all around: The employee wins by saving money, the service provider wins by gaining more business and the employer wins by increasing employee morale. The best thing about perk programs is that they are free to the employer." (Employee Benefit News)
Seven Companies With Unique Employee Health Benefits
"Home-improvement retailer Lowes established a partnership with the Cleveland Clinic in Ohio to offer heart surgery procedures at no cost to full-time employees and dependents enrolled in its self-insured medical plan. Lowe's covers all medical deductibles and coinsurance amounts, as well as travel and lodging expenses for the patient and a companion." (Mother Nature Network)
Enhanced Commuter Benefit Might Be Tied to Payroll Bill
"Public agencies, businesses and lawmakers are hoping a provision that allows public transit riders to put away more pre-tax money for commuting costs will be attached to legislation on the payroll tax cut, which is set to expire on Feb. 29." (LifeHealthPro)
Local Ohio Businesses Keep Employees Happy with Wide Range of Perks
"Companies in the Dayton area work to keep their employees happy, offering benefit packages that include health and disability insurance, 401(k) retirement plans, and paid vacation and holidays. Some businesses take it a step further, showering their staff with luncheons, treats in the break room, and free trips to sporting events and amusement parks." (Cox Ohio Publishing)
[Guidance Overview] IRS's 2012 Maximums for Valuing an Employer-Provided Vehicle's Personal Use
"If a company car is used for commuting or other personal uses that are more than de minimis, the employee will recognize income on the value of the personal use. That value may be determined using a general valuation rule or one of three special valuation rules: the automobile annual lease valuation rule, the cents-per-mile rule, or the commuting valuation rule." (Thomson Reuters/EBIA)
Am I Legally Required to Give Bereavement Leave
"There is no federal law on point. But, many companies still incorporate bereavement time off into their employee policies." (FindLaw)
The Supreme Court Should Reexamine Decisions That Have Made It Hard for People to Sue Their Own States
"[The case in question is concerned] with sick leave. [The plaintiff's] lawyers asked the court to consider the Family and Medical Leave Act as a whole and conclude that the law is 'an integrated response to gender discrimination.' If that's the case, men as well as women can argue that the law is constitutional." (Los Angeles Times)
Wisconsin State Worker Severance Packages Scrutinized
"The joint legislative subcommittee hearing follows reports by the Pioneer Press and KSTP-TV in November about $57 million paid out in unused sick time to state employees - a practice largely unheard of in the private sector - and $32 million paid out in unused vacation time between January 2008 and June 30, 2011." (MediaNews Group, Inc.)
The Positive Economic Impacts of Paid Family Leave for Families, Businesses and the Public
"To date, few studies have examined the economic effects of paid family leave as distinct from the effects of unpaid leave or no leave. As such, this is an important emerging area of research. If paid leave policies have the potential to protect women's and men's wages and long‐term earnings, and perhaps even to reduce the use of state‐ and federally‐funded public assistance, then any political or economic investment in such policies would be ? quite literally ? worth the cost." (Center for Women and Work, Rutgers, The State University of New Jersey)
Prepare for Higher Child Care and Commuting Costs in 2012
"Thanks to little-known factors such as lower transit and child care benefits, some workers can expect to have their net pay decrease by several hundred dollars this year as new federal regulations rolled out Jan. 1." (Reuters via Employee Benefit News)
[Guidance Overview] IRS Hikes 2012 Vehicle Values
"Employers with fleets of vehicles will be glad to know that the IRS has made it possible for them to determine the value of making them available for use in 2012. The IRS on Jan. 17 released the maximum vehicle values for use with the special valuation rules for employer-provided cars, trucks and vans in 2012." (Thompson Publishing Group)
Cash Out of Paid Time Off May Be Tax Trap
"PTO plan designs run the spectrum from strict use-it-or-lose-it plans to plans that allow employees to accumulate days, months or even years of PTO over their careers. Unfortunately employers often overlook laws that prohibit or restrict certain plan designs or that create unintended tax consequences." (Poyner Spruill LLP)
[Guidance Overview] Employer's Deduction for Flight Crew Meals Limited because De Minimis Rule Did Not Apply
"This [Chief Counsel Advice memorandum] illustrates how fringe benefit exclusions can sometimes overlap. When exclusions are provided under Code ? 132 and another section of the Code, a priority rule typically makes the Code ? 132 exclusion unavailable. But there are a few exceptions, including one that preserves the Code ? 132(e) de minimis fringe exclusion despite the availability of other Code exclusions. While in this instance it mattered little to employees which exclusion applied, it made a substantial difference to the employer." (Thomson Reuters/EBIA)
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