Updated Tax Publications to Assist Employers (article)
Two IRS publications have been updated for use in 2019 that may be of interest to employers. Both of these publications are supplements to IRS Publication 15, Employer's Tax Guide, and are intended to provide a more detailed description of employment related tax matters.
- Publication 15-A, Employer's Supplemental Tax Guide provides detailed employment tax information such as determining classification of individuals as employees or independent contractors, determining what constitutes taxable wages or sick pay and how to report such amounts, as well as reporting pension or annuity payments.
- Publication 15-B, Employer’s Tax Guide to Fringe Benefits 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, qualified transportation benefits, group term life insurance coverage, among other types of benefits.
In addition, the IRS released the 2018 version of the Form 8889 applicable to health savings accounts (HSAs). This form is generally used by HSA accountholders for purposes of reporting HSA contributions, computing an individual’s deduction and reporting distributions. Of particular note, the instructions include several illustrative examples for computing contributions and deductions, especially when employer contributions are made to an individual’s HSA.