Internal Revenue Service Archives - EMPLOYEE BENEFITS BLOG

The Employee Retention Credit: How to Litigate and Resolve Claims

by Shawn O’Brien, Samuel Hamer and Michael Scarduzio | Apr 10, 2025 | Employee Benefits, Employment

The Employee Retention Credit (ERC), introduced under the Coronavirus Aid, Relief, and Economic Security Act in March 2020, was designed to help employers retain employees during the COVID-19 pandemic by offering a refundable tax credit against certain employment taxes. However, the processing and payment of ERC claims have faced significant delays, with many claims remaining unprocessed or disallowed by the Internal Revenue Service (IRS).

In this Bloomberg Tax article, Shawn O’Brien, Samuel Hamer, and Michael Scarduzio summarize each ERC stage and outline a taxpayer’s path to payment by stage.

Access the article.

New Rules Simplify ACA Employer Shared Responsibility Reporting Obligations

by Jacob Mattinson, Sarah Raaii and Alden Bianchi | Jan 21, 2025 | Employee Benefits, Health and Welfare Plans

Two recently passed laws have modified the provisions of the Affordable Care Act (ACA) that require employers and insurers to prepare tax forms showing offers of health coverage, streamlining the compliance and reporting process.

Under the ACA’s employer shared responsibility provisions, applicable large employers must either offer qualifying health coverage to full-time employees (and their dependents), or they may face significant excise taxes. Employers may also face penalties if they fail to report, or make mistakes in reporting, the offered coverage. These new rules will ease the reporting burdens on employers seeking to prove that they follow these complex and demanding requirements.

How Employers Can Aid Employees Impacted by the LA Wildfires

by Brian Tiemann and Jennifer Hill | Jan 16, 2025 | Employee Benefits, Employment

Over the past two weeks, wildfires have caused substantial loss and damage to homes and communities in Los Angeles, California, and the surrounding areas. In the wake of such devastation, employers may seek opportunities to provide financial assistance to impacted employees. Fortunately, the Internal Revenue Service (IRS) has outlined various ways for employers to provide much-needed assistance to employees impacted by natural disasters like the wildfires, including tax-free qualified disaster relief payments, leave donation programs, and other tax-efficient options.

IRS Issues Proposed Regulations to Ensure Expanded Preventative Care Services Coverage

by Kevin Spencer, Evan Walters and Sama Kaseer | Dec 3, 2024 | Employee Benefits, Health and Welfare Plans

On November 18, 2024, the Internal Revenue Service (IRS) released Internal Revenue Bulletin 2024-47, which includes proposed regulations designed to ensure that non-grandfathered group health plans and insurance issuers provide an accessible exceptions process for preventive services, allowing coverage without cost sharing if deemed medically necessary by an individual’s provider.

Learn more about new IRS guidance in the latest Weekly IRS Roundup published by McDermott’s Tax Group.

IRS Releases Regulatory Notices Related to Health Plan Coverage of Contraceptives

by Kevin Spencer, Evan Walters and Sama Kaseer | Nov 12, 2024 | Employee Benefits, Health and Welfare Plans

The Internal Revenue Service (IRS) recently released Internal Revenue Bulletin 2024-44. The Bulletin includes Notice 2024-71, which provides a safe harbor under Internal Revenue Code § 213(d), treating amounts paid for condoms as medical care expenses eligible for reimbursement under various health plans. It also includes Notice 2024-75, which expands the list of preventive care benefits that high-deductible health plans can provide without a deductible or with a lower deductible, including benefits for over-the-counter oral contraceptives and condoms.

IRS Issues New Long-Term, Part-Time Employee Guidance Under the SECURE 2.0 Act for 403(b) Plans

by Kevin Spencer, Evan Walters and Sama Kaseer | Nov 7, 2024 | Employee Benefits, Retirement Plans

On October 3, 2024, the Internal Revenue Service (IRS) released Notice 2024-73, which provides guidance on the application of nondiscrimination rules under Internal Revenue Code § 403(b) for long-term, part-time employees. The notice also announces that the final regulations, which the IRS will issue for 401(k) plans on long-term, part-time employees, will apply to plan years beginning on or after January 1, 2026.

Government Announces 2025 Employee Benefit Plan Limits

by Jeffrey Holdvogt, Jacob Mattinson and Brian Tiemann | Nov 5, 2024 | Employee Benefits, Health and Welfare Plans, Retirement Plans

The Internal Revenue Service (IRS) has announced the cost-of-living adjustments to the applicable dollar limits for various employer-sponsored retirement and welfare plans for 2025. Most of the dollar limits that are subject to adjustment for cost-of-living increases will increase for 2025. The Social Security Administration released separate adjustment amounts.

See the amounts here.

IRS Introduces Supplemental Claim Process for Employee Retention Tax Credit

by Kevin Spencer, Evan Walters and Sama Kaseer | Oct 17, 2024 | Payroll and Fringe Benefits

The Internal Revenue Service (IRS) introduced a supplemental claim process to assist payroll companies and third-party payers in resolving incorrect claims for the Employee Retention Credit. This process allows third-party payers to correct or withdraw claims for taxpayers who are ineligible for the credit.

Learn more about this and other important regulatory developments from the IRS in the latest Weekly IRS Roundup.

Back-to-School Special: IRS Offers Insight on Implementing Qualified Student Loan Payments

by Jeffrey Holdvogt, Lisa Loesel and Teal Trujillo | Oct 15, 2024 | Employee Benefits, Retirement Plans, SECURE 2.0 Act

On August 19, 2024, the Internal Revenue Service issued Notice 2024-63 (the Notice), providing guidance regarding the implementation of Section 110 of the SECURE 2.0 Act of 2022, which permits employers with a 401(k) plan or 403(b) plan to provide matching contributions to employees based on employee student loan payments. Through various questions and answers, the Notice provides practical information on how to administer eligibility rules, employee certification, nondiscrimination testing, and other procedures.

IRS Releases Guidance on Matching Contributions for Student Loan Payments

by Kevin Spencer, Evan Walters and Sama Kaseer | Oct 1, 2024 | Employee Benefits, Retirement Plans

Last month, the Internal Revenue Service (IRS) released long-awaited guidance on matching contributions for qualified student loan payments under § 401(k) of the Internal Revenue Code and other similar retirement plans. This guidance aims to help plan sponsors with setting up these programs for plan years beginning after December 31, 2024, until proposed regulations are issued.

Learn more and see other updates in this Weekly IRS Roundup.

BLOG EDITORS

STAY CONNECTED

TOPICS

ARCHIVES

RECENT POSTS