Not only did Santa Claus deliver us some presents at Christmas, Congress did, too. At the very last minute, they passed the Consolidated Appropriations Act of 2016, and there are a few goodies in there for those of us who employ people.
We’ve put together a great overview of what employers need to know about these changes in regulations!
Work Opportunity Tax Credit (WOTC) Extended:
This program, which gives employers tax credits for hiring employees from various target groups, was extended through 2019, and retroactive through 2015. The maximum credit is $2,400 per employee hired.
If you plan to have any new hires in the next few years and aren’t familiar with this program, take a few minutes to become familiar with it. Your company may be leaving a lot of money on the table!
Cadillac Tax Delayed:
The Affordable Care Acts’s so called “Cadillac tax” on health benefits plans valued above $20,200 for single coverage, and $27,500 for family coverage has been delayed from 2018 to 2020. This is good news for many companies that wanted to hold onto their great health insurance plans.
Tax Breaks for Employer Provided Parking & Mass Transit:
As of 1/1/16, the monthly tax exclusion for mass transit passes or van pool rides increases to $255 per month, bringing it equal to the amount qualified for parking benefits. These qualify for employer subsidy with pre-tax dollars.
In addition, they retroactively raised the 2015 mass transit subsidy amount to $250 per month, matching the 2015 parking benefit. This is a smart move considering that many Millennials today prefer using mass transit to driving their own cars.
Affordable Care Act Reporting Deadlines Extended:
Not to be outdone, the IRS gave us a last minute present as well.
- The deadline for employers to provide individuals with Form 2095-B and 1095-C has been extended to March 31, 2016.
- The deadline for reporting this information to the IRS has been extended to May 31st for non-electronic filing, and June 30th for electronic filers.
These deadline extensions are welcome news to small businesses who are struggling to figure out how to complete these forms and filings for the first time.