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BenefitsLink Health & Welfare Plans Newsletter
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[Guidance Overview]
HHS Commences HIPAA Pilot Audit Program
"The vast majority of covered entities and business associates will not be audited in 2012, but they can expect the audit program to provide lessons on compliance risks and best practices. They will likely need to update their staffing, policies and procedures, training, and business associate agreements accordingly. They may also gain insight into the audit methodologies and begin preparing for potential audits in 2013 and beyond."
(Cooley LLP)
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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)
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Benefits in General; Executive Compensation
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[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)
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[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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[Guidance Overview]
IRS Mileage Rate Remains Unchanged
"Beginning on Jan. 1, 2012, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be 55.5 cents per mile for business miles driven. The rate for business miles driven is unchanged from the mid-year adjustment that became effective on July 1, 2011."
(Barker Olmsted & Barnier)
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Estimates of Federal Tax Expenditures for Fiscal Years 2011-2015
"The Joint Committee staff has made its estimates . . . based on the provisions in Federal tax law as enacted through January 10, 2011. Expired or repealed provisions are not listed unless they have continuing revenue effects that are associated with ongoing taxpayer activity. Proposed extensions or modifications of expiring provisions are not included until they have been enacted into law."
(The Joint Committee on Taxation)
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Employee Ownership Update for January 17, 2012
NCEO Executive Director Loren Rodgers discusses Iowa's ESOP initiative, research finding that shared capitalism companies are among the best to work for, Mitt Romney and the ESOP at Bain, employee ownership in the UK, the DOL's plans to re-propose its fiduciary regulations, and the NCEO board election.
(National Center for Employee Ownership)
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Employment Rate Among Older Workers Reduced, Not Increasing
"By the time the recent recession began, in 2008, Americans were already well into a reversal of the 20th-century trend toward earlier and earlier retirement. The employment rate for older women started rising in the mid-1980s, and for older men soon afterward. The effects were most pronounced among people 65 and older, but were noticeable for those in their early 60s as well. In 1994, 43 percent of people ages 60 to 64 were employed; by 2006, 51 percent were."
(Bloomberg L.P.)
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Press Releases
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