:::: MENU ::::

Monthly Archives / September 2014

  • Sep 23 / 2014
What's New

California Paid Sick Leave

The California Healthy Workplaces, Healthy Families Act (A.B. 1522) was signed by the governor on September 10. Effective July 1, 2015, employers must provide certain California employees with one hour of paid sick leave for every 30 hours worked.

  • Sep 23 / 2014
What's New

2015 Limits

2015 Annual HSA Contribution Levels
• The maximum annual HSA contribution for an eligible individual with self-only coverage is $3,350 ($3,300 in 2014).
• For family coverage, the maximum annual HSA contribution is $6,650 ($6,550 in 2014).
• The catch-up contribution for an individual age 55 or older is $1,000 in 2009 and all years going forward.
Note: An individual who is an eligible individual on the first day of the last month of the taxable year (December for most taxpayers) is allowed the full annual contribution (plus catch-up contribution, if 55 or older by year-end), regardless of the number of months the individual was an eligible individual in the year. or individuals who are no longer eligible individuals on that date, both the HSA contribution and catch-up contribution apply pro rata based on the number of months of the year a taxpayer is an eligible individual.

2015 Amounts for Out-of-Pocket Spending
The maximum annual out-of-pocket amount for HDHP self-only coverage is $6,450 ($6,350 in 2014) and the maximum annual out-of-pocket amount for HDHP family coverage is twice that, $12,900 ($12,700 in 2014).

2015 Minimum Deductible Amounts
The minimum deductible for HDHPs is $1,300 ($1,250 in 2014) for self-only coverage and $2,600 ($2,500 in 2014) for family coverage.
Note: A fiscal year plan that satisfies the requirements for an HDHP on the first day of the first month of its fiscal year may apply that deductible for the entire fiscal year.

  • Sep 02 / 2014
What's New

Gift Certificates as de Minimis Fringe Benefits

RC132 deals with de minimis fringe benefits. If you take a look at the way the statute is written, three things to consider are the frequency, the amount, and the administrative burden involved in tracking these things. And remember that “administrative burden” in today’s environment is much different than it was when this section was written. On the subject of frequency, a common situation involves an employer that provides a gift certificate to its employees for a holiday ham. If that happens for all employees once a year, it would be considered to be a de minimis fringe benefit under 132. On the other hand, if that same company were to provide those employees a ham every quarter, then it wouldn’t be considered to be a de minimis fringe benefit and it would be taxable. When we talk about gift cards or gift certificates, the idea is that they can be used as cash or if they are a cash equivalent, they are never going to fall into the de minimis fringe category. That’s a bright-line test you can use, even where the amount is only $10-$15.
 – APA, Payroll Currently, July 4, 2014 Issue

OCCAPA: Network. Learn. Succeed.