Tax Publications to Assist Employers (article)
The Internal Revenue Service has recently updated two publications that may be of interest to employers:
- Publication 15-B, Employer’s Tax Guide to Fringe Benefits (for use in 2018). This publication provides information for employers on the tax treatment of various fringe benefits including health care coverage, health savings accounts, qualified small employer health reimbursement arrangements (QSEHRA), cafeteria plans, dependent care assistance plans, educational assistance plans, and group term life insurance coverage, among other types of benefits.
In particular, this publication reflects changes made by the Tax Cuts and Jobs Act enacted in December, 2017, specifically relating to qualified transportation and bicycle benefits (see Tax Reform: Impact on Benefits, Benefit Beat, 1/16/18, for background of these changes). Items included in this publication affirm that the employer deduction is no longer available for reimbursement amounts, including salary reduction amounts; and affirms that, for tax-exempt entities, the unrelated business income tax must be assessed on these amounts.
- Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans (for use in preparing 2017 returns) provides an overview of various tax saving vehicles used to offset health care costs including health savings accounts, medical savings accounts, health flexible spending arrangements and health reimbursement arrangements.