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Monthly Archives: May, 2017

  • HR Updates by Team Nash

    Employers Can Earn a Tax Credit Equal to 40% of a New Hire’s First-Year Wages

    The Internal Revenue Service (IRS) is reminding employers planning to hire new workers that the Work Opportunity Tax Credit (WOTC) may be available to those who hire long-term unemployment recipients and others certified by their state workforce agency.

    WOTC Explained
    The WOTC encourages employers to hire certain designated categories of workers. Employers generally can earn a tax credit equal to 25% or 40% of a new employee’s first-year wages, up to the maximum for the target group to which the employee belongs. The maximum tax credit amounts depend on the wages paid to the new hire, the new employee’s target group, and the number of hours worked during the first year of employment. Click here for specific amounts and calculations.

    Eligible businesses claim the WOTC on their income tax return. The credit is first figured on IRS Form 5884 and then becomes a part of the general business credit claimed on Form 3800.

    How to Qualify for the WOTC
    To qualify for the credit, an employer must first request certification by filing IRS Form 8850 with its state workforce agency within 28 days after the eligible worker begins work. Other requirements and further details can be found in the instructions to IRS Form 8850.

    There are 10 categories of WOTC-eligible workers, including:

    • Qualified long-term unemployment recipients (who have been unemployed for at least 27 weeks and received state or federal unemployment benefits during part or all of that time)
    • Qualified IV-A Temporary Assistance for Needy Families (TANF) recipients
    • Unemployed veterans, including disabled veterans
    • Ex-felons
    • Designated community residents living in Empowerment Zones or Rural Renewal Counties
    • Vocational rehabilitation referrals
    • Summer youth employees living in Empowerment Zones
    • Food stamp (SNAP) recipients
    • Supplemental Security Income (SSI) recipients
    • Long-term family assistance recipients

    Employers may use the U.S. Department of Labor’s WOTC Calculator to see how much they can earn in tax credits.

    Our section on Employment Taxes features summaries of various employment taxes and related resources from the IRS.

    HR News Alerts provided by:

    Team Nash
    2005 E 2700 St, Suite 140, Salt Lake City, UT, 84109
    385-234-6754

    Please Note: The information and materials herein are provided for general information purposes only and are not intended to constitute legal or other advice or opinions on any specific matters and are not intended to replace the advice of a qualified attorney, plan provider or other professional advisor. This information has been taken from sources which we believe to be reliable, but there is no guarantee as to its accuracy. In accordance with IRS Circular 230, this communication is not intended or written to be used, and cannot be used as or considered a ‘covered opinion’ or other written tax advice and should not be relied upon for any purpose other than its intended purpose.

    The information provided herein is intended solely for the use of our clients and members. You may not display, reproduce, copy, modify, license, sell or disseminate in any manner any information included herein, without the express permission of the Publisher. Kindly read our Terms of Use and respect our Copyright.

    © 2017 HR 360, Inc. – All rights reserved

    Read more
  • Running with Ed.

    Today, Team Nash Insurance is supporting local education by participating in Running with Ed in beautiful Park City, Utah!

    What is Running with Ed?

    “Running with Ed (RWE) is a project of the Park City Education Foundation (PCEF.) Our goal is to raise money for Park City’s public schools through a fun-filled, healthy event that reaches across the entire community and beyond.”

    We believe, as an organization, in supporting our local community. Thank you, PCEF!

    Read more
  • Health Care Reform Updates by Team Nash

    Guidance Affects ACA’s Premium Tax Credit & Individual Mandate Provisions

    Consistent with prior guidance, the Internal Revenue Service (IRS) has announced adjustments to the required contribution percentages that will be used in 2018 to determine whether an individual is eligible for a premium tax credit and an affordability exemption from the individual shared responsibility provisions (the “individual mandate”).

    Premium Tax Credit Eligibility
    An individual may be eligible for a premium tax credit to purchase health coverage through the Health Insurance Marketplace (Exchange) if, among other things, he or she is not able to get affordable coverage through an eligible employer plan that provides minimum value. For this purpose, an employer-sponsored plan will be considered affordable for plan years beginning in 2018 if the portion of the annual premium an employee must pay for self-only coverage does not exceed 9.56% of his or her household income. 

    Individual Mandate Affordability Exemption
    The individual mandate requires every individual to have minimum essential health coverage for each month, qualify for an exemption, or make a payment when filing his or her federal income tax return. One such exemption applies when the individual cannot afford coverage because the minimum amount he or she must pay for the premiums is more than a designated percentage of the individual’s household income. For plan years beginning in 2018, the designated percentage will be 8.05%.

    Click here to read the IRS announcement.

    Check out our Premium Tax Credit for Individuals and Individual Mandate (Individual Shared Responsibility) sections for additional information regarding eligibility.

    Health Care Reform Updates provided by:

    Team Nash
    2005 E 2700 St, Suite 140, Salt Lake City, UT, 84109
    385-234-6754

    Please Note: The information and materials herein are provided for general information purposes only and are not intended to constitute legal or other advice or opinions on any specific matters and are not intended to replace the advice of a qualified attorney, plan provider or other professional advisor. This information has been taken from sources which we believe to be reliable, but there is no guarantee as to its accuracy. In accordance with IRS Circular 230, this communication is not intended or written to be used, and cannot be used as or considered a ‘covered opinion’ or other written tax advice and should not be relied upon for any purpose other than its intended purpose.

    The information provided herein is intended solely for the use of our clients and members. You may not display, reproduce, copy, modify, license, sell or disseminate in any manner any information included herein, without the express permission of the Publisher. Kindly read our Terms of Use and respect our Copyright.

    © 2017 HR 360, Inc. – All rights reserved

    Read more
  • Health Care Reform Updates

    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 federal tax code.

    The 21st Century Cures Act, which was signed into law in December 2016, exempts so-called QSEHRAs from the ACA’s market reforms.

    QSEHRA Requirements
    To qualify as a QSEHRA, an arrangement generally must:

    • Be funded solely by an eligible employer without salary reduction contributions;
    • Provide, after an eligible employee provides proof of coverage, payment or reimbursement of qualified medical expenses (which generally includes individual health insurance premiums) incurred by the employee or his or her family members;
    • Limit annual payments and reimbursements to $4,950 per employee or $10,000 per family (which are prorated where coverage is less than the entire year); and
    • Be provided on the same terms to all eligible employees.

    Under the law, the term ‘eligible employer’ means an employer that has fewer than 50 full-time equivalent employees and does not offer a group health plan to any of its employees. Therefore, large employers and employers who offer a group health plan must still comply with the prior agency guidance.

    The law defines an ‘eligible employee’ as any employee of an eligible employer. Employers may, however, exclude employees from QSEHRA eligibility who:

    • Have not completed 90 days of service;
    • Have not attained age 25;
    • Are part-time or seasonal;
    • Are covered by certain collective bargaining agreements; or
    • Are nonresident aliens that receive no earned income from sources within the U.S.

    Employer Notice & Reporting Requirements
    While the 21st Century Cures Act requires an employer funding a QSEHRA for any year to provide an initial written notice to each eligible employee that includes certain information about the QSEHRA, the IRS recently announced its intention to issue additional guidance concerning the contents of the notice. Until the issuance of such guidance, employers that provide QSEHRAs for years beginning in 2017 are not required to furnish an initial written notice to eligible employees, and no penalties will be imposed for failure to provide the notice.

    Note that the law also requires an employee’s total permitted benefit for the year to be reported on his or her Form W-2.

    Click here for more information on QSEHRAs from the U.S. Department of Labor.

    Our Health Reimbursement Arrangements section offers additional information about HRAs.

    Health Care Reform Updates provided by:

    Team Nash
    2005 E 2700 St, Suite 140, Salt Lake City, UT, 84109
    385-234-6754

    Please Note: The information and materials herein are provided for general information purposes only and are not intended to constitute legal or other advice or opinions on any specific matters and are not intended to replace the advice of a qualified attorney, plan provider or other professional advisor. This information has been taken from sources which we believe to be reliable, but there is no guarantee as to its accuracy. In accordance with IRS Circular 230, this communication is not intended or written to be used, and cannot be used as or considered a ‘covered opinion’ or other written tax advice and should not be relied upon for any purpose other than its intended purpose.

    The information provided herein is intended solely for the use of our clients and members. You may not display, reproduce, copy, modify, license, sell or disseminate in any manner any information included herein, without the express permission of the Publisher. Kindly read our Terms of Use and respect our Copyright.

    © 2017 HR 360, Inc. – All rights reserved

    Read more