Headlines about "Fringe benefits - transit, discounts, other"
Gathered from the web by the editors at BenefitsLink.com.
Tennessee Bank Makes It Easy for Its Employees Who Want to Adopt or Foster Children
Excerpt: "The bank and its parent company, First Horizon, are intentional about accommodating any of their 6,000 employees who want to adopt or foster. So much so that last month the Dave Thomas Foundation for Adoption placed First Tennessee among its 'America's 100 Best Adoption-Friendly Workplaces.' The foundation noted that the bank reimburses expenses up to $5,000 for each adoption. It also offers paid time off." (Memphis Commercial Appeal)
2009 Employee Benefits Survey Report
Excerpt: "SHRM's 2009 Employee Benefits survey report provides comprehensive information about the types of benefits U.S. employers offer to their employees. In 2009, 274 benefits were explored, covering the areas of health care and welfare benefits, preventive health and wellness benefits, financial and compensation benefits, paid time off benefits, family-friendly benefits, flexible working benefits, personal services benefits, housing and relocation benefits, and business travel benefits. The report breaks the benefits down by organization staff size and organization sector and covers trends in benefits offerings over the last five years." (Society for Human Resource Management)
The Push for Time Off Work Gains in Many States
Excerpt: "Governors in Colorado and Nevada signed laws within the past month that give employees unpaid leave for school-related events, becoming the first states to do so in a decade. Wisconsin lawmakers will take up similar legislation this fall. Lawmakers in roughly a dozen other states are debating measures that would require employers to grant paid family or sick leave; President Barack Obama campaigned in support of such laws last year." (The Wall Street Journal)
New Study Suggests That Employees Value Their Total Benefits Offering More Than Cash
Excerpt: "Of the supplemental benefits evaluated, employees ranked their dental insurance, 401(k)/retirement plans, vision insurance and group life insurance as most valuable, Sun Life said in a press release. Employees were asked to assume they had all the medical insurance their family needed and to distribute 100 points across other benefits based on how much they would value them. Only 33% of respondents assigned a value greater than 0 to cash -- and only 5% of the total assigned a value greater than 30 to cash. Cash was the least utilized category . . . ." (PLANSPONSOR.com; free registration required)
GASB Issues Guidance on Multi-Employer OPEB Plans
Excerpt: "The Governmental Accounting Standards Board (GASB) has issued an exposure draft of a proposed statement that addresses issues related to the use of the alternative measurement method and the frequency and timing of measurements by employers that participate in agent multiple-employer other postemployment benefit (OPEB) plans. The proposed Statement would amend paragraphs 33 - 35 of Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions, to permit an agent employer that has an individual-employer OPEB plan with fewer than 100 total plan members to use the alternative measurement method, at its option, regardless of the number of total plan members in the agent multiple-employer OPEB plan in which it participates." (PLANSPONSOR.com; free registration required)
Recession Likely to Cause New Jersey Workers to Forgo Paid Leave
Excerpt: "Heralded as a victory for workers' rights and criticized as a potential drain on businesses, a law making New Jersey the second state in the nation to provide paid leave to care for new children or ailing relatives takes effect Wednesday. But the measure is not expected to dramatically alter the workplace right away, its champions and opponents agree. One reason: the recession." (New Jersey On-Line LLC)
Charleston, West Virginia, Still Allows Employees to Trade Sick Days for Health Insurance
Excerpt: "Eight years after state government stopped the practice for new hires, the city of Charleston continues to let employees trade unused sick days for health insurance premiums in retirement. And despite the fact that the city, like the state, has a hefty unfunded liability for health insurance promised to its retirees, City Manager David Molgaard says the city comes out ahead by using the incentive." (Charleston Daily Mail)
[Guidance Overview] Massachusetts Supreme Judicial Court Rules That Unused Vacation Is Earned Wages, Despite Company Policy Otherwise
Excerpt: "The Supreme Judicial Court of Massachusetts recently held that employers must pay a discharged employee the full amount of any unused vacation time even when the employer has a written policy that states otherwise. In Electronic Data Systems Corp. v. Attorney General, No. SJC-10260, 2009 WL 1608857 (Mass., June 11, 2009), the Court adopted the state attorney general's interpretation that under the Massachusetts wage law, 'earned' vacation time payments are wages that must be paid to an employee upon termination of employment." (Pepper Hamilton LLP)
[Official Guidance] IRS Information Letter on Benefits Provided to Volunteer Firefighters and Emergency Medical Responders (PDF)
2 pages. Excerpt: "[The IRS was asked] for an explanation of the types of benefits that section 139B of the Internal Revenue Code (Code) excludes from gross income, and the meaning of the term 'qualified reimbursement payment.'" (Internal Revenue Service)
[Guidance Overview] Employee Discounts on Products Made by Employer's Former Parent Company Are Subject to Income and FICA Tax
Excerpt: "EBIA Comment: The perpetuation of a parent company's employee discount program when a subsidiary is sold or otherwise ceases to be part of the discount provider's controlled group raises a variety of legal and practical issues, several of which are nicely illustrated by this CCA. Discounts that might have been excludable as qualified employee discounts when entities were part of the same controlled group cease to be excludable after the transaction. And if the discount provider ceases to supply information sufficient to accurately determine the fair market value of its discount, the employer must either find some other way to obtain that information or consider ending the discount program. The employer will not be relieved of its reporting and withholding obligations just because the information necessary to meet those obligations is difficult to obtain." (Employee Benefits Institute of America)
[Guidance Overview] Colorado Expands Parental Leave (PDF)
2 pages. Excerpt: "On June 1, Colorado Governor Bill Ritter signed into law the Parental Involvement in K-12 Education Act (H.B. 1057). The new law, which will apply to the upcoming school year, requires covered employers to provide unpaid leave for parents to attend certain academic activities for or with their children. This law reflects a growing trend among states to expand employee leave entitlements for other than health-related reasons." (Buck Consultants)
Employees Appreciate Lighter Schedule During Summer Months, New Survey Suggests
Excerpt: "Flexible schedules (38%) and leaving work early on Fridays (32%) are the most coveted summer benefits, according to workers polled by OfficeTeam. Other benefits employees would appreciate include social activities such as a picnic or potluck party (6%) and a more relaxed dress code (5%). 'Employees appreciate flexibility in their jobs because it gives them greater control and enables them to handle other commitments without sacrificing their work performance,' said Robert Hosking, executive director of OfficeTeam, in a press release." (PLANSPONSOR.com; free registration required)
[Guidance Overview] Proposed IRS Paradoxical Changes to Tax Rules for Employer-Provided Cell Phones
Excerpt: "[T]he Internal Revenue Service (IRS) has proposed three alternative methods for meeting the substantiation requirements and has invited public comment on the proposed new rules. (See IRS Notice 2009-46). Adding to the confusion, the Commissioner of the IRS has recently announced that the Obama administration is asking Congress to change the current tax laws to eliminate any tax consequences to employers or employees for personal use of work-related cellular phones and PDAs. Both of these developments are described in greater detail [in the target document]." (McGuireWoods LLP)
[Guidance Overview] Clarification and Softening of IRS 'Crackdown' on Taxation of Business Cell Phones and PDAs (PDF)
5 pages. Excerpt: "The IRS Commissioner has indicated a very significant change in IRS direction on this issue with the successive release of IRS Notice 2009-46 last week and his important statement [on June 16]. The extent of this shift in the IRS position is demonstrated when it is placed within the context of the IRS audits that have created this compliance nightmare." (Morgan, Lewis & Bockius LLP)
[Guidance Overview] New Colorado Leave Requirements Scheduled to Accompany the Upcoming Fall School Year (PDF)
2 pages. Excerpt: "On June 1, 2009, Colorado's Governor, A. William Ritter, signed into law the Parental Involvement in K-12 Education Act ('Act'). House Bill 09-1057, now codified at C.R.S. ? 8-13.3-101 et seq., takes effect on August 5, 2009, unless a referendum petition is filed before this date. According to the General Assembly Bill Information Office, referendum petitions are rarely filed, meaning employers should plan accordingly to ensure they are prepared to comply with the Act's requirements this fall." (Snell & Wilmer)
IRS Says Cell Phone Law Obsolete
Excerpt: "In a reversal of course, the Internal Revenue Service says it will suggest that there be no tax consequence for employers or employees for personal use of work-related cell phones. In a statement, IRS Commissioner Doug Shulman said: 'Although some of the proposed changes would add clarity, the current law will inevitably leave widespread confusion among employees and businesses. Therefore, (Treasury) Secretary (Timothy) Geithner and I ask that Congress act to make clear that there will be no tax consequence to employers or employees for personal use of work-related devices such as cell phones provided by employers.'" (PLANSPONSOR.com; free registration required)
Society for Human Resource Management Offers New Approach on Employee Leave
Excerpt: "'It's time to pursue a new approach to this issue absent of rigid, unworkable mandates,' said [the SHRM representative] in concluding her remarks. 'It's time to give employees greater flexibility and to give employers more predictability. It's time to encourage paid leave -- without stifling existing innovative benefits or hindering job creation.'" (Society for Human Resource Management)
SHRM, Democrats Tangle Over Paid Sick-Days Bill
Excerpt: "The HR organization's China Miner Gorman warns that the legislation mandating paid sick days would foist new requirements on employers that could turn out to be as difficult and costly to administer as the Family and Medical Leave Act -- whose 200 pages of regulations she held up at the hearing." (Workforce Management; free registration required)
[Guidance Overview] IRS Request for Comments on Three Alternatives for Substantiating Business Use of Employer-Provided Cell Phones
Excerpt: "EBIA Comment: As the IRS has previously acknowledged, the 'listed property' substantiation rules -- especially the requirement that an employee prove the business purpose of each business use -- are difficult to satisfy in the context of employer-provided cell phones. Notice 2009-46 represents a welcome first step toward making those substantiation rules more manageable. While this is encouraging news, employers should remember that, until substantiation guidance is actually issued and becomes effective, there are no special simplified substantiation methods for cell phones (as there currently are for employer-provided vehicles), so full compliance with the 'listed property' substantiation rules is required." (Employee Benefits Institute of America)
Last Week's House Committee Hearing on Family and Paid Sick Leave: Some Links
Excerpt: "Last week, the Subcommittee on Workforce Protections of the House Committee on Education and Labor held hearings on paid sick leave and paid family leave. Mike Kruger, a staffer, sends along this note and these links for more info . . . ." (Workplace Prof Blog)
[Guidance Overview] Comments Requested on Proposed Methods for Substantiating the Business Use of Employer-Provided Cell Phones (PDF)
3 pages. Excerpt: "On June 8, the Internal Revenue Service (IRS) issued Notice 2009-46, seeking comments on proposed simplified procedures for substantiating the business use of employer-provided cell phones under Section 274(d)(4). This provision generally requires employees to allocate their personal and business use of employer-provided cell phones and contemporaneously document such use in a business log or diary. The IRS views the value of any such personal use as income to the employee. The Notice is the first step towards future IRS guidance that will better clarify how to substantiate the allocation between employees' business and personal use of their employer-provided cell phones." (Morgan, Lewis & Bockius LLP)
Rising Commuting Costs Prompts More Employer Help
Excerpt: "A new poll by the Society for Human Resource Management (SHRM) finds the rising price of gas has prompted more companies to help employees with their commuting costs. According to SHRM, 61% of companies surveyed last month reported raising the amount they reimburse for gas to the federal cap of 55 cents a mile, up from 42% of companies a year ago." (PLANSPONSOR.com; free registration required)
[Guidance Overview] Massachusetts Supreme Judicial Court Rules Employers Must Pay Terminated Employees for Any Unused Vacation Time
Excerpt: "On June 11, 2009, the Massachusetts Supreme Judicial Court issued a ruling in the case of Electronic Data Systems v. Attorney General holding that, under the provisions of the Massachusetts Wage Act (Massachusetts General Laws chapter 149 ? 148) employers must compensate any involuntarily discharged employee for unused accrued vacation time. This ruling is consistent with a 1999 advisory issued to all employers by the Massachusetts Attorney General's office." (Fisher & Phillips LLP)
[Guidance Overview] Massachusetts Supreme Court Takes Tough Stance on Vacation Pay
Excerpt: "Massachusetts employers should review their vacation and paid time off ('PTO') policies, to be sure they comply with a recent MA Supreme Court decision, ELECTRONIC DATA SYSTEMS CORPORATION vs. ATTORNEY GENERAL & another, SJC 10260 . . . . [Note to lawyers: [embedded] link is to the slip opinion.] The Court ruled that EDS, a Massachusetts employer, must pay for accrued vacation time when it terminates an employee. An employer policy which defined unused vacation time as 'unearned' and forfeitable was declared void. The Court upheld an Attorney General citation requiring EDS to pay the vacation accruals plus a 200% penalty." (theworkplace.biz)
Milwaukee Paid Sick Leave Found Unconstitutional
Excerpt: "On June 12, 2009, the Milwaukee County Circuit Court . . . issued its decision in the Milwaukee Paid Sick Leave Ordinance . . . case. The Court found the Ordinance to be unconstitutional, invalidly enacted, and, consequently, unenforceable. Accordingly, businesses which employ workers in the City of Milwaukee will not have to comply with the Ordinance's mandates. A copy of the decision can be found at http://www.michaelbest.com//files//upload/sick-leave-decision.pdf." (Michael Best & Friedrich LLP)
[Guidance Overview] The IRS Says, Unofficially, We want to Save Employers $$ on Cell Phone Taxes
Excerpt: "An Internal Revenue Service (IRS) official, in an anonymous Reuters interview, asserted the tax agency is actually trying to save employers money by revamping the way employers and workers account to the IRS for the use of an employer-provided cell phone. The IRS this week called for public comment on its suggestions that included letting employers deduct the entire sum of a worker's cellphone use if a worker can establish he or she uses a personal phone for some period, and letting employers use statistical sampling to generalize about usage . . . . 'Minute by minute documentation really doesn't make any sense -- we've been hearing all about it, and we said yes it makes no sense,' the unnamed official told Reuters. The IRS' proposed changes are intended to 'reduce how much employers have to spend trying to comply with the tax law,' the official added." (PLANSPONSOR.com; free registration required)
IRS Proposes Safe Harbor Rule for Taxing Work Cell Phone Use
Excerpt: "The Internal Revenue Service (IRS) is considering a new rule to tax a quarter of employees' use of employer-provided cell phones as a fringe benefit, Dow Jones reported. The Dow Jones news report said the IRS is considering simplifying existing recordkeeping requirements about employee cell phone use. The IRS proposal would be for a safe harbor rule deeming 75% of work cell phone usage to be for work and 25% to be personal and taxable as a fringe benefit, Dow Jones explained." (PLANSPONSOR.com; free registration required)
Hearing on the Family Income to Respond to Significant Transitions Act, and the Healthy Families Act
June 11, 2009. Excerpt: "[The hearing will] examine proposals for expanding workers' access to paid family and sick leave. While more than 80 percent of Americans support having paid sick days, the U.S. is the only country among the 22 nations ranked high in economic and human development that doesn't guarantee paid sick leave to workers. The FIRST Act, H.R. 2339, provides grants to the states to implement and improve their paid family leave programs. Healthy Families Act, H.R. 2460, mandates that businesses with 15 or more employees provide up to 7 days of paid sick days to their employees." (U.S. House of Representatives, Committee on Education & Labor, Workforce Protections Subcommittee)
[Opinion] Workplace Flexibility versus Unpaid Leave
Excerpt: "Rather than relying on costly mandates like the FMLA, the government should consider policies that increase workplace flexibility. For instance, many employees would prefer to receive compensatory time off in lieu of overtime pay, but the Fair Labor Standards Act (FLSA) requires overtime work to be compensated with time-and-a-half cash wages. This means that employees who work extra hours one week are unable to offset those hours with comp time in a subsequent week. Since the 1970s, federal and state employees have been allowed to substitute comp time off in lieu of overtime wages. Private sector workers should have similar options." (National Center for Policy Analysis)
[Guidance Overview] Nevada Expands Parental Leave for Employees Attending School-Related Activities
Excerpt: "On May 28, 2009, Governor Jim Gibbons signed into law AB 243 expanding the leave entitlements of employees for attending or participating in school activities of their children. AB 243 expands leave in two significant ways. First, AB 243 extends the current protections of Nevada Revised Statutes section 392.920 to the parents, guardians and custodians of children enrolled in private as well as public schools. Second, AB 243 requires employers of 50 or more employees to grant employees up to 4 hours of unpaid leave per school year for each child enrolled in school, to attend certain school-related activities. AB 243 becomes effective August 15, 2009." (Littler Mendelson P.C.)
Businesses Dispute Need for Federal Mandated Sick Leave
Excerpt: "The Healthy Families Act (HFA), legislation introduced in Congress last month by Sen. Edward M. Kennedy, Massachusetts Democrat; Sen. Christopher J. Dodd, Connecticut Democrat; and Rep. Rosa DeLauro, Connecticut Democrat, will make its subcommittee debut Thursday. Businesses are scrambling to oppose the federal legislation, saying that mandated sick leave will result in more wage and job cuts in an already turbulent economy." (The Washington Times)
House Passes Paid Parental Leave Bill for Federal Employees
Excerpt: "By a vote of 258 to 154, the House of Representatives has passed the Paid Parental Leave Bill for the second time in two years, FedSmith.com reports. The new bill states that its purpose is 'To provide that 4 of the 12 weeks of parental leave made available to a Federal employee shall be paid leave....,' according to the news report. The bill provides that the parental leave is not to be considered annual or vacation leave, and it does not accumulate for future use." (PLANSPONSOR.com; free registration required)
[Guidance Overview] Colorado Employers Must Cope with New Employee Leave Mandate
Excerpt: "A new Colorado law requires employers to provide nonsupervisory employees with up to 18 hours of annual unpaid leave time per academic year to participate in parent-teacher conferences and other school-related meetings. An advisory memo from the law firm Littler Mendelson said full-time employees are entitled to up to 18 hours of unpaid leave in the academic year or up to six hours of leave in a one-month period. Part-time employees are entitled to a prorated amount of leave. The Parental Involvement in K-12 Education Act takes effect in August 2009." (PLANSPONSOR.com; free registration required)
[Guidance Overview] Paid Parental Leave Passes House of Representatives
Excerpt: "The U.S. House of Representatives [on Thursday June 4] took a significant step toward improving paid parental leave benefits for federal employees who are new parents. The Federal Employees Paid Parental Leave Act of 2009 (H.R. 626), which passed the House this evening by a 258 to 154 vote, responds to the needs of tens of thousands of working families in the federal government by providing four weeks of paid parental leave for the birth, adoption, or fostering of a child." (U.S. House of Representatives, Committee on Oversight and Government Reform)
Recent Modifications of Employee Benefits Data in the National Compensation Survey
Excerpt: "The first part of the article provides a general overview of BLS benefits surveys over time, and the second part focuses on the five benefits that were recently dropped from the NCS [namely, educational assistance, recreational benefits, adoption assistance, employer-provided home computers, and travel accident insurance]." (U.S. Bureau of Labor Statistics)
[Guidance Overview] Bureau of Labor Statistics Data on Employee Access to 'Other Types of Benefits,' 1979-2008
Excerpt: "Table 3 also shows the percent of workers with access to 'other benefits' in 2008. . . . The benefits with the highest rate of worker access were work-related education assistance (50 percent) and employee assistance programs (42 percent). Among the benefits with lower access rates, 2 percent of workers in private industry had access to employer-provided personal computers for home use, and 3 percent of workers had access to employer provided child-care funds." (U.S. Bureau of Labor Statistics)
[Guidance Overview] Summer Vacation Leave Policies
Excerpt: "Many small-business owners are likely to find a perennial summertime challenge, keeping their companies staffed during peak vacation times, even harder this year. Layoffs and jobs lost to attrition mean many companies have leaner staffing, while employees still want to take time off. Owners may find this summer that they need to change their vacation policies. And those without policies may feel the need to create them." (NJ.com)
Paid Sick Days Would Benefit Workers and Employers
Excerpt: "The Connecticut General Assembly is considering a measure that would grant most workers paid sick days. This proposal has clear public health benefits, but could also prove a boon to employers and the Connecticut economy. It's true that paid sick days are a direct expense for employers, but research shows that making employees come to work sick -- or firing them if they do not come to work -- costs employers more money than the cost of providing sick days." (Connecticut Post)
[Official Guidance] Text of IRS Notice 2009-48: Q&A on Entities Subject to Information Reporting Requirements for Employer-Owned Life Insurance (PDF)
14 pages. From an IRS-provided summary: 'Section 101(j) was added to the Internal Revenue Code by the Pension Protection Act of 2006 to ensure that employees whose lives are insured by their employers are adequately informed of that coverage and its consequences. Section 6039I sets forth corresponding reporting obligations applicable to those employers who obtain life insurance coverage on their employees. This notice provides guidance in the form of questions and answers concerning what entities are subject to the information reporting required for employer-owned life insurance contracts and how those entities can provide that information." (Internal Revenue Service)
Legislation Introduced Mandating Paid Vacation
Excerpt: "Representative Alan Grayson of the U.S. House of Respresentatives has introduced the Paid Vacation Act of 2009 (HR 2564). If passed, this bill would amend the Fair Labor Standards Act to require that employers with 50 or more employees provide a minimum of one week paid annual leave to employees after one year of service. Employers with 100 or more employees would be required to offer employees at least two weeks of paid vacation each year." (International Foundation of Employee Benefit Plans)
Maximizing the Value of Benefits in a Recession
Excerpt: "Cash no longer flows as freely as it once did, and employers are responding. Many employers have cut back on funding retirement plans and other benefits. Many employers have cut back on staffing levels. Many employers have cut back on both. However, all employers want to come out of this recession ahead of their competition. History indicates that a workforce focused on achieving the next goal, rather than dodging the ax, will help an employer win. This puts pressure on human resource managers in the classic dilemma of keeping morale high while cutting employee security. Fortunately, most people value more than just cash and have the ability to do so in the workplace just as well as other parts of their life. Tapping into those values offers a source of low cost morale raisers. In this article, we outline a few ideas for motivating a workforce without a large outlay of cash." (JPMorgan Chase & Co.)
Adding More Variable Elements to Total Compensation and Control Fixed Employee Costs (PDF)
Pages 8-11 of 12 pages. (Milliman)
State of Washington to Delay Paid Parental Leave Implementation
Excerpt: "Washington state's paid parental leave law won't take effect this October as originally scheduled since lawmakers have postponed the effective date for three years (SB 6158). The law will provide employees with partial wages of up to $250 per week while taking up to five weeks of leave from work to bond with a new child. In January 2008, a legislative task force on funding options recommended state funding without any initial employer financing. However, lawmakers have yet to determine a funding mechanism." (Mercer LLC)
Milwaukee, Wisconsin, Sick-Day Ordinance to Get Hearing
Excerpt: "The city of Milwaukee's controversial paid sick-leave ordinance gets another hearing in court . . ., when Circuit Court Judge Thomas A. Cooper will hear arguments on whether to block permanently the measure. In February, Cooper issued a temporary injunction that halted the ordinance . . . . Cooper is not expected to issue an immediate ruling, but will provide a written order later. The sick-leave ordinance was approved by 69% of city voters in November, after being placed on the ballot through a petition drive. Milwaukee became the third city in the country to mandate paid sick days. San Francisco and Washington, D.C., have enacted similar laws." (Milwaukee Journal Sentinel)
Dismissal for Not Calling In Doesn't Violate FMLA
Excerpt: "Affirming the court's decision, the Minneapolis-based U.S. Court of Appeals for the 8th Circuit agreed that the hospital's call-in policy was permissible under applicable regulations; that Bacon signed an acknowledgment that the hospital's policies apply to employees absences; and that although Bacon's discharge interfered with her FMLA rights, Bacon was terminated to for failing to comply with the call-in policy, and that she would have been terminated for doing so irrespective of whether these absences were related to FMLA leave. Bacon v. Hennepin County Medical Center, 8th Cir., No. 08-1168, (12/22/08)." (Workforce Management; free registration required)
Executive Summaries of Market Surveys on the U.S. Group Disability Market, U.S. Group Life Market, and Absence Management
Excerpt from the group disability survey: 'JHA is pleased to present the 2008 U.S. Group Disability Market Survey. Conducted on an annual basis, this benchmark industry survey covers Group LTD and STD inforce and sales premium results for 2008. Further analysis and data on lapse rates, renewal activity, and ASO are included for those companies that provided this data. Thirty insurance carriers participated in the 2008 Market Survey, representing close to 95% of the group disability insurance marketplace." (JHA, a subsidiary of General Re Life Corporation)
[Guidance Overview] IRS's Depreciation Deduction Limits and Inclusion Amounts for Automobiles Placed in Service in 2009
Excerpt: "EBIA Comment: Generally, the cost of acquiring and maintaining a company car for an employee may qualify as a deductible expense for the employer. But the deduction limits and income inclusion amounts set forth in this revenue procedure can significantly reduce the actual tax deductions available for some vehicles. Interestingly, the depreciation limits and income inclusion threshold for automobiles other than trucks and vans are unchanged from last year, but the income inclusion amounts for those automobiles have fallen significantly. For trucks and vans, the depreciation limits, the income threshold, and the income inclusion amounts have all fallen. Lower inclusion amounts mean that leasing automobiles of any type is relatively more attractive in 2009 than it was last year." (Employee Benefits Institute of America)
Oversight Committee Votes to Provide Federal Employees Paid Parental Leave Benefits
Excerpt: "The Committee on Oversight and Government Reform today took an important step toward improving paid parental leave benefits for federal employees who are new parents. The Federal Employees Paid Parental Leave Act of 2009 (H.R. 626), responds to the needs of tens of thousands of working families in the federal government by providing 4 weeks of paid parental leave for the birth, adoption, or fostering of a child." (U.S. House of Representatives Committee on Oversight and Government Reform)
OPM Director Calls for Regulatory Reforms, Announces Work-Life Pilot Programs
Excerpt: "[The director] said OPM would work with Interior and GSA to create a set of model programs for the 7,000 employees who work at the three agencies' headquarters, which are located within blocks of each other in Washington. His goal, he said, was to turn the three workplaces into a 'utopia' within 12 months. Though he did not detail in his remarks the pilot programs he intends to set up, Berry said in an interview afterward that he expects to begin by improving the quality of a health clinic that serves the agencies. The approach Berry outlined would mirror his approach to work-life balance programs as an assistant secretary at the Interior Department during the Clinton administration. In that position, Berry held a series of town hall meetings to determine employees' needs and based on their suggestions, upgraded the department's cafeteria and health clinic." (GovernmentExecutive.com)
No Paid Leave for New Moms in the United States
Excerpt: "This Mother's Day we reflect on the critical but often overlooked issue of maternity leave. Among peer countries with comparable per capita income (i.e., those in the G7), the United States provides the fewest mandated maternity leave benefits in both length of leave and amount of paid time off . . . ." (Economic Policy Institute)
Employer's Calculation of Absenteeism Rate Violates FMLA, Court Says
Excerpt: "An employee fired for excessive absences may go to trial on her claim that the employer's absenteeism calculation violated the Family and Medical Leave Act (FMLA), a federal district court has ruled. The employer calculated absenteeism by dividing missed work hours by scheduled work hours, excluding FMLA leave from both figures. The court found omitting FMLA leave from scheduled work hours unlawfully penalized employees using this leave by reducing the allowable hours of non-FMLA absences. The ruling reminds employers to evaluate the practical impact of absence policies for FMLA compliance." (Mercer LLC)
[Guidance Overview] Qualified Transportation Accounts Cannot Be Cashed Out
Excerpt: "The IRS recently affirmed that employees are not permitted to 'cash out' their qualified pre-tax transportation accounts if they terminate employment. Referencing the Treasury Regulations and citing the constructive receipt doctrine as the basis for its position, IRS explained that compensation reduction amounts for qualified transportation benefits under IRC ? 132(f) are essentially not refundable." (Deloitte via BenefitsLink.com)
Creative Ways to Increase Low-Income Employee Participation in 401(k) Plans
Excerpt: "Research from the Retirement Security Project . . . indicates that low-income individuals can, and will, save given the right circumstances. So what exactly are the right circumstances? If you are thinking outside the box like Staples, you partner up with Progress Through Business, a nonprofit organization focusing on poverty alleviation issues, and H&R Block to offer discounted tax preparation to low-income employees of Staples, Inc. thorough a pilot program called Tax Break first rolled out in January 2007 and run again in January 2008. . . . What made Tax Break unique was the inclusion of opportunities for low income employees to enroll in both employer and government benefit programs in the tax preparation process." (Retirement Plan Blog)
[Opinion] We Need Legislation to Grant Americans at Least Seven Paid Sick Days a Year
Excerpt: "It sounded like the responsible course of action when President Obama and the Centers for Disease Control and Prevention urged people with flu symptoms to stay at home so they do not infect others in the community -- and to keep any sick children out of school as well. . . . But what are civic-minded workers to do when staying home will cost many their daily pay and, in a recession-plagued economy, possibly their jobs if employers become exasperated over their absence?" (The New York Times; free registration required)
Employers Preparing for the H1N1 Virus: Benefits Preparedness
Excerpt: "In the benefits arena, employers whose employees and family members are impacted by the malicious bug would need to gear up for the fact that benefit plans such as employer-provided health plans and flexible spending accounts will likely get a work-out. Short-term disability programs which are often self-funded by the employer would get significant use as well in addition to paid-time off policies and employee assistance plans. Since most or all of these programs may be considered to be ERISA-covered plans and have either named or functional ERISA fiduciaries who are responsible for overseeing these plans, such individuals should, with the assistance of legal counsel, seriously consider taking steps now to determine whether their providers are prepared for a pandemic." (Attorney B. Janell Grenier via Benefitsblog.com)
Furloughs As an Option to Avoid Layoffs
Excerpt: "Times remain tough. And most employers would prefer not to fire people, if they can avoid it. One possible way to avoid layoffs is through furloughs -- making workers take an unpaid leave of absence for a set period of time. The following items can help you decide if furloughs are an option for your firm." (The New York Times; free registration required)
[Guidance Overview] Employee Benefits in an Excess Benefit Transaction Analysis
Excerpt: "The IRS has recently stepped up scrutiny of the compensation paid to key employees and insiders of tax-exempt organizations and has the authority to levy significant excise tax penalties if it finds that an organization pays excessive compensation. As a result, it is critical that boards of directors fully comply with the complex set of rules under Section 4958 of the Internal Revenue Code (the 'Code') to avoid these penalties. One of the most challenging aspects of these rules is to identify and value the total compensation paid to the organization's key employees and determine that such compensation is reasonable and appropriate. The employee benefits provided to such individuals can be an important part of this compensation analysis and should not be overlooked." (McGuireWoods LLP)
[Guidance Overview] Furloughs and Reduced Hours: New Guidance on Cost-Cutting Strategies Other than Layoffs
Excerpt: "Last December, as the recession was beginning to deepen, Littler published an Insight, Furloughs and Reduced Hours: Cost-Cutting Strategies Other Than Layoffs, discussing several alternatives to layoffs, particularly mandatory furloughs of exempt employees, mandatory use of vacation/PTO during furloughs, and reduced workweeks, based on the limited legal precedent available at that time on these subjects. Recently, the U.S. Department of Labor (DOL) issued three opinion letters that address some of these alternatives. This Insight is an update to the December 2008 Insight and provides the latest legal analysis." (Littler Mendelson P.C.)
Fewer Employers Paying the Costs to Relocate an Employee and Are Cutting Their Relocation Budgets
Excerpt: "However, when companies do decide to move an employee, they are more likely to offer incentives such as help finding a job for a spouse. An Atlas Van Lines news release about its survey said respondents expect the trend to continue at least through 2009. 'Relocation is a tough proposition for both employers and employees. Businesses are looking to save costs everywhere, and workers are worried about losing money on their homes and uprooting their families,' said Greg Hoover, president and COO of the moving company, in the announcement.'But companies still need good people, and those willing to relocate are being compensated for their trouble.'" (PLANSPONSOR.com; free registration required)
Generous Sick-Leave Cashouts for Retirees Cost San Jose, California, Millions
Excerpt: "[San Jose public employees benefit] from city policies that are under scrutiny as San Jose confronts staggering budget deficits: letting longtime employees cash out unused sick and vacation leave when they retire. The policy cost taxpayers $7.8 million in 2008, up from $5.5 million the year before, according to pay data requested by the Mercury News. That's about one-tenth of next budget year's projected $78 million deficit. City officials say the benefit exceeds what government officials get elsewhere, not to mention private-sector employees where such large cash-outs are unheard of." (San Jose Mercury News)
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