Heroes Earnings Assistance and Relief Tax Act of 2008 Archives

Question of the Week: Which Payroll Taxes Do We Need to Pay on Differential Pay to Active Military Duty Employees?

This week’s question comes from Rocco, a plant manager. We pay employees on active military duty a differential wage that makes up for wages that they would have earned had they not been on active military duty. Which payroll taxes do we need to pay on differential...

IRS Issues Notice on FSA Distributions to Reservists

The IRS recently issued Notice 2008-82 which provides guidance on the recently enacted §114 of the Heroes Earnings Assistance and Relief Tax Act of 2008 (the HEART Act). The HEART Act amended §125 of the Internal Revenue Code of 1986 (IRC) to allow distributions of...