Here is a roundup of payroll issues covered in the past week:
This week, the IRS announced that individuals with family coverage under a high-deductible health plan may treat $6,900 as the maximum deductible health saving account contribution for 2018.
The maximum contribution was reduced to $6,850 on March 2 because of a change in the inflation adjustment calculations for 2018 under the Tax Cuts and Jobs Act (Pub. L. 115-97), the IRS said in Revenue Procedure 2018-27.
The Treasury Department and the IRS were told by holders of health savings accounts that the reduction would impose unanticipated administrative and financial burdens because some had family coverage under an HDHP and had made the maximum contribution before the reduction went into effect, while others had made salary reduction elections based on the $6,900 limit, the agency said.
The American Payroll Association had requested transition relief for employers, citing complications for payroll operations. Including the excess $50 in contributions as taxable income required “an adjustment by payroll departments at a cost to employers that far exceeds $50,” the association said April 6 in a letter to the IRS.
Taxpayers who contributed more than $6,850, up to the $6,900 maximum, and who have received as a distribution the difference between the two amounts may treat the distribution as a mistake and repay the health savings account without any tax or reporting consequence, the revenue procedure said.
New York’s labor department clarified that the hours worked by home-care aides may exclude meal periods and sleep times for those who work shifts of at least 24 hours, according to two notices in the April 25 New York Register that re-adopt an emergency rule and issue proposed rulemaking to codify the department’s interpretation.
The re-adopted emergency rule (LAB-17-18-00005-E) is effective April 25 until June 3. The state labor department said in the notice that it “intends to adopt the provisions of this emergency rule as a permanent rule, having previously submitted to the Department of State a notice of proposed rulemaking.”
The proposed rulemaking (LAB 17-18-00005-P) is accompanied by guidance on how public comment may be provided on the proposed rule. A public hearing is to be held at 11 a.m. on July 11 at the Department of Labor, 55 Hanson Place, Brooklyn, N.Y., the notice said.
Comments on the proposed rule also may be submitted using the guidance contained in the notice until July 16, which is five days after the last scheduled public hearing.
By Jazlyn Williams
Take a free trial of Bloomberg BNA’s Payroll Decision Support Network , your one-stop resource for reliable, up-to-date guidance and analysis in every area of payroll administration and compliance.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)