Tag: IRS
Leave: IRS Issues Guidance on Tax Treatment of Donated Leave
According to a new IRS notice, leave donated by an employee to a qualified employer-sponsored leave bank following a major disaster is not considered income to the donating employee, as long as the leave received by an affected employee is treated as wages for purposes of FICA, FUTA, and income tax withholding. Our HR Management […]
Driving: How Do We Properly Calculate Reimbursements?
We’re trying to straighten out our auto reimbursement policy. First, we have employees who drive their own cars between worksites each day as well as to different sites each day. The miles vary from 10 up to 100 miles in a day. Do we have to reimburse them and, if so, at what rate? We […]
IRS Simplifies Tax Filing Requirements for Small Employers
The Internal Revenue Service has just issued temporary and proposed regulations designed to reduce the tax filing burden for small business owners. As of Jan. 1, 2006, eligible small employers will be able to file the new Form 944 (Employer’s Annual Federal Tax Return) once a year, rather than filing Form 941 (Employer’s Quarterly Federal […]
IRS Announces 2006 Standard Mileage Rate
The Internal Revenue Service has issued the 2006 standard mileage rate commonly used to reimburse employees for the business use of a vehicle. The new rate will be 44.5 cents per mile, beginning Jan. 1, 2006.
Short Takes: IRS Standard Mileage Rate
Has the IRS permanently changed the standard mileage reimbursement rate?
Military Pay: How to Treat USERRA Pay from a Tax Perspective
I’m concerned about conflicting information we’ve received from the IRS and our legal counsel regarding how the USERRA (Uniformed Services Employment and Reemployment Rights Act) pay differential (pay difference between military pay and the employer’s pay) should be treated from a tax perspective. Do we report these payments on a 1099-MISC or on a W-2?
State Joins IRS in Tax Breaks for Hurricane Relief Donations
The California Franchise Tax Board has announced state tax benefits for businesses and employees who aid Hurricane Katrina relief efforts by donating the cash value of employee leave time. The program–which mirrors a similar federal IRS program announced last week–allows workers to donate unused sick, vacation, or other personal leave time in exchange for the […]
Taxes: Changes in Law Affect the Workplace
President Bush has signed the Working Families Tax Relief Act of 2004 and the American Jobs Creation Act of 2004, both of which make important tax changes employers need to keep in mind.
Taxes: New IRS Ruling Could Affect Your Holiday Gift Plan; What You Need to Know
What’ll it be this year, a holiday ham for your employees or a holiday gift coupon for a comparable amount? It would seem reasonable to view these presents as more or less the same, at least for tax purposes. But, as we’ll explain, the IRS said otherwise in a recent decision.