Vision Payroll

April 23, 2014

Tip of the Week: IRS Releases 2015 Inflation Adjustments for Health Savings Accounts

IRS Releases 2015 Inflation Adjustments for Health Savings Accounts

IRS Releases 2015 Inflation Adjustments for Health Savings Accounts

The Internal Revenue Service recently released Rev. Proc. 2014-30 which contained the 2015 inflation adjusted amounts for Health Savings Accounts or HSAs.

Deductions Limitation Set to Increase

The annual limitation on deductions will increase from $3,300 in 2014 to $3,350 in 2015 for those with self-only coverage. Those with family coverage will have the deduction limitation increase from $6,550 to $6,650.

High-Deductible Health Plan Minimum Deductibles to Increase

The minimum deductibles of a high deductible health plan will increase from a minimum deductible of $1,250 in 2014 to $1,300 in 2015 for self-only coverage, and from $2,500 in 2014 to $2,600 in 2015 for family coverage.

Annual Out-of-Pocket Limitation to Increase

The annual out-of-pocket limitation for 2015 will also increase from $6,350 in 2014 to $6,450 for those with self-only coverage; the out-of-pocket limitation for family coverage will increase from $12,700 in 2014 to $12,900 in 2015.

Contact Vision Payroll Today

Contact Vision Payroll if you have any questions on the updated 2015 inflation adjusted amounts for HSAs in Rev. Proc. 2014-30 or visit our Important Facts and Figures page for further information.

October 29, 2011

IRS Announces Increase in Qualified Transportation Benefits Exclusion for Qualified Parking

IRS Announces Increase in Qualified Transportation Benefits Exclusion for Qualified Parking
IRS Announces Increase in Qualified Transportation Benefits Exclusion for Qualified Parking
In IR-2011-104 and Revenue Procedure 2011-52, the Internal Revenue Service (IRS) announced that the monthly limit on the value of qualified transportation benefits exclusion for qualified parking provided by an employer to its employees for 2012 rises to $240, up $10 from the limit in 2011.

Other Exclusions Revert to Previous Levels

The IRS also announced that the temporary increase in the monthly limit on the value of the qualified transportation benefits exclusion for transportation in a commuter highway vehicle and transit pass provided by an employer to its employees expires and reverts to $125 for 2012. As previously reported, the American Recovery and Reinvestment Act of 2009, also known as ARRA, increased the monthly exclusion for transit passes and commuter highway vehicles under §132 of the Internal Revenue Code of 1986 (IRC) for part of 2009 and all of 2010 and 2011. Since this provision of ARRA expires December 31, 2011, the exclsuion reverts to the previous limit of $120, adjusted for inflation to $125 for 2012.

Contact Vision Payroll Today

Contac Vision Payroll today if you have further questions on the qualified transportation benefits exclusion.

July 26, 2011

IRS Announces Intention to Discontinue High-Low Substantiation Method

IRS Announces Intention to Discontinue High-Low Substantiation Method
IRS Announces Intention to Discontinue High-Low Substantiation Method
In Announcement 2011-42, Discontinuance of High-Low Method for Substantiating Travel Expenses, the Internal Revenue Service (IRS) announced its intention to discontinue authorizing the high-low substantiation method.

No Comments Received on Proposed Change

In Rev. Proc. 2010-39, 2010-42 IRB 459, the IRS requested public comment on the continuing need for the high-low method for substantiating, under §274(d) of the Internal Revenue Code, lodging, meal, and incidental expenses incurred in traveling away from home. The IRS received no comments.

New Revenue Procedure Will Provide General Rules

In 2011, the IRS plans to publish a revenue procedure providing the general rules and procedures for substantiating lodging, meal, and incidental expenses incurred in traveling away from home (omitting the high-low substantiation method).

Contact Vision Payroll Today

Contact Vision Payroll if you have any questions on the discontinuance of high-low method for substantiating travel expenses

May 17, 2011

IRS Releases 2012 Inflation Adjustments for Health Savings Accounts

IRS Releases 2012 Inflation Adjustments for Health Savings Accounts
IRS Releases 2012 Inflation Adjustments for Health Savings Accounts
The Internal Revenue Service recently released Rev. Proc. 2011-32 which contained the 2012 inflation adjusted amounts for Health Savings Accounts or HSAs.

Deductions Limitation Set to Increase

The annual limitation on deductions will increase from $3,050 in 2011 to $3,100 in 2012 for those with self-only coverage. Those with family coverage will have the deduction limitation increase from $6,150 to $6,250.

High-Deductible Health Plan Minimum Deductibles Unchanged

The minimum deductibles of a high deductible health plan will see no change; they will remain at a minimum deductible of $1,200 in 2012 for self-only coverage and $2,400 for family coverage.

Annual Out-of-Pocket Limitation to Increase

The annual out-of-pocket limitation for 2012 will also increase from $5,950 in 2011 to $6,050 for those with self-only coverage; the out-of-pocket limitation for family coverage will increase from $11,900 to $12,100.

Contact Vision Payroll Today

Contact Vision Payroll if you have any questions on the updated 2012 inflation adjusted amounts for HSAs in Rev. Proc. 2011-32 or visit our Important Facts and Figures page for further information.

December 31, 2010

Question of the Week: What Is the Monthly Limit on the Value of Qualified Transportation Benefits?

What Is the Monthly Limit on the Value of Qualified Transportation Benefits?
What Is the Monthly Limit on the Value of Qualified Transportation Benefits?
This week’s question comes from Steve, an HR director. We provide transportation benefits to our employers. In 2010, we could exclude $230 per month for most qualified transportation benefits. What is the monthly limit on the value of qualified transportation benefits? Answer: The Internal Revenue Service (IRS) in IR-2010-127 announced inflation adjustments related to several tax provisions. Among them, the IRS announced that for 2011, the monthly limit on the value of qualified transportation benefits provided by an employer to its employees would remain at $230.

Details Found in Revenue Procedure 2011-12

Details on the inflation adjustments are found in Revenue Procedure 2011-12. The eight items for which adjustments are included are the following:

  1. Tax Rate Tables
  2. Child Tax Credit
  3. Hope Scholarship and Lifetime Learning Credits
  4. Earned Income Credit
  5. Standard Deduction
  6. Qualified Transportation Fringe
  7. Personal Exemption
  8. Interest on Education Loans

Qualified Transportation Benefits Limits Are Unchanged

Employers are again allowed to exclude from wages the value of transportation benefits provided to an employee up to the following limits:

  • $230 per month for combined commuter highway vehicle transportation and transit passes.
  • $230 per month for qualified parking.
  • For a calendar year, $20 multiplied by the number of qualified bicycle commuting months during that year for qualified bicycle commuting reimbursement of expenses incurred during the year.

Do You Still Have Questions on Qualified Transportation Benefits?

Contact Vision Payroll if you have further questions on the limit on the value of qualified transportation benefits.

December 8, 2010

Tip of the Week: IRS Increases Standard Mileage Rate to 51 Cents per Mile

IRS Increases Standard Mileage Rate to 51 Cents per Mile
IRS Increases Standard Mileage Rate to 51 Cents per Mile
The standard mileage rates for the use of automobiles beginning January 1, 2011 will be 51 cents per mile for business miles driven and 19 cents per mile driven for medical or moving purposes the Internal Revenue Service announced in Revenue Procedure 2010-51 and News Release IR-2010-119.

Both Rates Are Higher than 2010 Rates

The new rates are changed from 50 cents per mile for business travel and 16.5 cents per mile for moving and medical travel for 2010.

Charitable Rate Remains Unchanged

The rate for miles driven in service of charitable organizations remains the same at 14 cents per mile.

Contact Vision Payroll for More Information on 2011 Mileage Rates

Contact Vision Payroll if you have any questions on 2011 mileage rates or visit our Important Facts and Figures page for further information.

October 3, 2010

IRS Releases Updated Per Diem Rates in Rev. Proc. 2010-39

Filed under: News — Tags: , , , , , , — Vision @ 4:53 pm
IRS Releases Updated Per Diem Rates in Rev. Proc. 2010-39
IRS Releases Updated Per Diem Rates in Rev. Proc. 2010-39
In Rev. Proc. 2010-39, the Internal Revenue Service (IRS) released updated per diem rates for 2011 and made some minor changes to list of high-cost areas.

Per Diem Rates Decrease for High-Cost and Other Localities

In §5.02, the IRS announced that per diem rate for high-cost localities is $233 (down from $258 in 2010) and the per diem rate for other localities is $160 (down from $163 in 2010).

Meal Rates and Incidental Rates Remain the Same for 2010

In §5.02, the IRS announced that meal rate for high-cost localities is $65 and the meal rate for other localities is $52. These rates are unchanged from 2010. Also unchanged is the incidental expenses rate. In §4.05, the IRS announced that the incidental rate is $5 for 2011.

High-Cost Localities Announced

In §5.03, the IRS announced the localities that “are high-cost localities for all of the calendar year or the portion of the calendar year specified in parentheses under the key city name.”

Additions to and Deletions from the High-Cost List

In §5.04, the IRS announced the localities that have been added to the list of high-cost localities. They are:

  • Yosemite National Park, California;
  • Silverthorne/Breckenridge, Colorado;
  • New Orleans, Louisiana;
  • Falmouth, Massachusetts;
  • Riverhead/Ronkonkoma/Melville, New York;
  • Kill Devil, North Carolina;
  • Stowe, Vermont; and
  • Virginia Beach, Virginia.

In §5.04, the IRS announced the localities that have had the portion of the year for which they are considered high-cost localities changed from 2010. They are:

  • South Lake Tahoe, California;
  • Aspen, Colorado;
  • Telluride, Colorado;
  • Vail, Colorado;
  • Fort Lauderdale, Florida;
  • Miami, Florida; and
  • Martha’s Vineyard, Massachusetts.

In §5.04, the IRS also announced that Hershey, Pennsylvania has been removed from the list of high-cost localities.

New Per Diem Rates Effective October 1, 2010 or January 1, 2011

The new per diem rates are effective October 1, 2010 for taxpayers using the fiscal year period for reimbursements and January 1, 2011 for those using the calendar year period for reimbursements.

Contact Vision Payroll if you have any questions on Rev. Proc. 2010-39.

May 25, 2010

IRS Releases 2011 Inflation Adjustments for Health Savings Accounts

The Internal Revenue Service (IRS) recently released Rev. Proc. 2010-22, which contained the 2011 inflation adjusted amounts for Health Savings Accounts or HSAs. Since the changes in the Consumer Price Index for the relevant period do not result in changes to the amounts in 2011, the amounts will stay the same as in 2010.

The annual limitation on deductions will remain at $3,050 in 2011 for those with self-only coverage. Those with family coverage will have the deduction limitation stay at $6,150.

The definition of a high deductible health plan will see no change from one with a minimum deductible of $1,200 in 2011 for self-only coverage and $2,400 for family coverage.

The annual out-of-pocket limitation for 2011 also will not increase from $5,950 for those with self-only coverage; the out-of-pocket limitation for family coverage remains at $11,900.

Contact Vision Payroll if you have any questions on Rev. Proc. 2010-22 and the amounts for HSAs in 2011.

December 2, 2009

Tip of the Week: IRS Reduces Standard Mileage Rate to 50 Cents per Mile

The standard mileage rates for the use of automobiles beginning January 1, 2010 will be 50 cents per mile for business miles driven and 16.5 cents per mile driven for medical or moving purposes the Internal Revenue Service announced in Revenue Procedure 2009-54 and News Release IR-2009-111. The new rates are changed from 55 cents per mile for business travel, 24 cents per mile for moving and medical travel for 2009. The rate for miles driven in service of charitable organizations has remained the same at 14 cents per mile. Contact Vision Payroll if you have any questions on 2010 mileage rates.

October 30, 2009

Question of the Week: How Do I Opt Out of Filing Form 944?

This week’s question comes from Rick, a restaurant owner. I started my business in June of this year. Since I didn’t have a big payroll in June, the Internal Revenue Service (IRS) recently informed me that I should file Form 944. Since my payroll will be much higher in 2010, I should file Form 941. How do I opt out of filing Form 944? Answer: In Rev. Proc. 2009-51, the IRS explained the procedure to opt out of filing Form 944. Employers who have previously filed Form 941 or Form 944 should call or write the IRS stating that they want to opt out of filing Form 944 before April 2, 2010. New businesses should call or write the IRS before the second day “of the month that the first required Form 941 for the current tax year is due.” In 2010, those days are April 2, 2010, July 2, 2010, October 2, 2010, and January 4, 2011 (due to automatic extensions for holiday and weekend days). Telephone numbers and mailing addresses are provided in Rev. Proc. 2009-51. Contact Vision Payroll if you have any questions on opting out of Form 944.

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