Articles and Blogs

A concern for many workers today is the student loan burden they carry. Many employees, both young and old, are paying off large student loan balances rolled up in pursuing undergraduate and graduate college degrees. As the cost of college education continues to increase at rates that surpass the general inflation rate in the... READ MORE

On March 25, 2014, the United States Supreme Court issued its ruling in United States v. Quality Stores, Inc., et al., holding in an 8-0 decision that severance payments made to employees involuntarily terminated from employment are generally considered taxable wages under the Federal Insurance Contributions Act (“FICA”).  The decision overturns an earlier ruling... READ MORE

IRS rules governing health flexible spending arrangements (“FSAs”) require cafeteria plans to forfeit unused amounts left in a participant’s health FSA at the end of a plan year. This so-called  “use-it-or-lose-it” rule was perceived as a significant barrier to health FSA participation by many employees, especially lower and moderate income employees.  They are more... READ MORE

The Internal Revenue Service (“IRS”) is warning consumers about a telephone scam that targets taxpayers, and specifically immigrants, throughout the country.  During the scam phone call, victims are threatened with arrest, deportation or suspension of a business or driver’s license if they do not promptly pay money allegedly owed to the IRS through a... READ MORE

For the past several years, the Internal Revenue Service (“IRS”) has been devoting considerable attention to worker classification issues involving the misclassification of employees as independent contractors.  These misclassifications are important to the IRS and the federal government because they often lead to underreporting and underpayment of taxes.  Traditionally, the IRS has sought to... READ MORE

The IRS recently issued Notice 2012-40 providing guidance on the $2,500 maximum annual limit on employee contributions to health care flexible spending accounts (“FSAs”) as set forth in the Affordable Care Act. The full text of the Notice can be found here. The Act states that the limit is effective January 1, 2013 for... READ MORE