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Showing posts from December, 2016

Qualified Small Employer HRAs

On December 13, 2016, President Obama signed the 21st Century Cures Act, allowing qualified small employers to offer Health Reimbursement Arrangements (HRA) that follow certain terms.

After the Affordable Care Act was passed, the IRS originally determined that an HRA was not a qualified group health plan. The Cures Act overrules this decision. HRAs are again an option for qualifying small employers.

To be eligible, the small employer must have fewer than 50 employees and must not offer a group health plan to any of its employees.

The Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) must be subject to the following terms.
No salary reduction contributions may be made (i.e., 100% employer-funded).Employer must receive proof of employee’s minimum essential coverage.Reimbursements must be for qualifying medical expenses.Reimbursements for any year cannot exceed $4,950 (or $10,000 for family coverage), which will be adjusted annually for inflation.Employer must offer the …

Revised Form I-9 Released

The U.S. Citizenship and Immigration Services released a revised Form I-9. All new hires after January 21, 2017, must complete the revised Form I-9. All prior released versions of Form I-9 will be invalid for new hires.

Employers are required to have a completed hard copy of Form I-9 on file for each employee. Current employees do not need to re-complete the revised form.

More information on Form I-9 can be found on the USCIS website.

Filing Date Change for Forms W-2

Question:

A non-profit organization recently asked if there is a change in the payroll reporting deadline for 2016. If yes, when do the Forms W-2 need to be filed?

Answer:

Yes, there is a change in the deadline for filing Forms W-2, W-3, and 1099-MISC. All forms must be submitted by January 31, 2017, for tax year 2016. The Forms W-2 and W-3 must be submitted to the Social Security Administration (SSA), and the Forms 1099-MISC must be submitted to the IRS.
Form W-2, Wage and Tax Statement for employees Form W-3, Wage and Tax Statement for employersForm 1099-MISC for reporting non-employee compensation to individuals or qualifying businesses (e.g., contractors, speakers, landlords, love offering recipients)  These changes to the Internal Revenue Code were a part of the PATH ActProtecting Americans from Tax Hikes, Section 201, enacted on December 18, 2015. The IRS’s reminder provides more detailed information.

The January 31 deadline has long applied to employers furnishing copies of t…

2017 Standard Mileage Rates

The IRS issued 2017 standard mileage rates. These rates begin on January 1, 2017. The rates apply to the use of a car, van, pickup or panel truck.
53.5 cents per mile for business miles driven (down from 54 cents for 2016)17 cents per mile driven for medical or moving purposes (down from 19 cents for 2016)14 cents per mile driven in service of charitable organizations (no change from 2016) More information is available on the IRS’s webpage.

New Due Date for Missionary FBARs

Notice:

Individuals holding or acting as signatories on certain foreign bank accounts must file annual disclosures with the IRS. This includes a number of missionary clients of MinistryCPA. As of the 2017 filing season (year ended December 31, 2016), FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR) will be due on April 15.

According to Act Sec. 2006(b)(11) of the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015,

"The due date of FinCEN Report 114 (relating to Report of Foreign Bank and Financial Accounts) shall be April 15 with a maximum extension for a 6-month period ending on October 15 and with provision for an extension under rules similar to the rules in Treas. Reg. section 1.6081–5. For any taxpayer required to file such Form for the first time, any penalty for failure to timely request for, or file, an extension, may be waived by the Secretary."