HIGHLIGHTS

• The IRS has issued three new tools for 2018 tax withholding.
• The updates reflect changes made by a tax reform law enacted in 2017.
• Employers must use the new tables but do not have to use the new Form W-4 for 2018.
• An updated calculator allows taxpayers to check withholdings.

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HIGHLIGHTS

• The IRS reduced the HSA contribution limit for 2018 for individuals with family HDHP coverage by $50 to $6,850.
• All other HSA and HDHP limits for 2018 remain the same as those previously announced by the IRS.
• Employees with family HDHP coverage may need to change their HSA elections to comply with the new limit.

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HIGHLIGHTS

• Employers can no longer take a tax deduction for qualified transportation fringe benefits.
• Except for bicycle commuting reimbursements, qualified transportation benefits are still nontaxable to employees.
• Employers that provide paid family and medical leave may qualify for a temporary tax credit.

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HIGHLIGHTS

• The IRS issued guidance on the employer shared responsibility enforcement process.
• The IRS plans to issue Letter 226J to propose and assess employer shared responsibility penalties.
• No penalties have been assessed under the employer shared responsibility rules at this time.

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HIGHLIGHTS

• Employees’ salary reduction contributions to health FSAs are subject to a maximum dollar limit.
• The initial dollar limit was $2,500. For 2017, the dollar limit was increased to $2,600.
• For the 2018 plan year, the health FSA dollar limit will be further increased to $2,650.

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HIGHLIGHTS

• The IRS recently announced cost-of-living adjustments to the annual dollar limits for employee benefit plans.
• Many of these limits will increase for 2018.
• In 2018, employees may contribute more money to their HSAs, health FSAs and 401(k) accounts.

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The IRS Office of Chief Counsel has recently issued several information letters regarding the Affordable Care Act’s individual and employer mandate penalties. These letters clarify that:

In the early morning hours of July 28, 2017, members of the U.S. Senate voted 49-51 to reject a “skinny” version of a bill to repeal and replace the Affordable Care Act (ACA), called the Health Care Freedom Act (HCFA).
This was the final vote of the Senate’s 20-hour debate period, and effectively ends the Republicans’ current efforts to repeal and replace the ACA. However, the skinny repeal bill may be reintroduced at some point in the future.

On June 7, 2017, the U.S. DOL withdrew an administrative interpretation regarding joint employment. The interpretation was issued in 2016 by the DOL to help employers identify joint employment situations.

DOL Audits