Qualified Retirement Plans: Know the Rules

The IRS annually releases its Required Amendments (RA) list, which includes changes that individually designed retirement plans may need to make in order to remain qualified under the Internal Revenue Code. The most recent RA list was released via Notice 2017-72, which contains changes not only to the qualification requirements for individually designed plans but also to the deadline for …

Federal Payroll Laws for Nonprofit Organizations

Payroll for nonprofit organizations can be challenging, as it requires dealing with special provisions of the Fair Labor Standards Act (FLSA), which is administered by the DOL, and by the federal tax code, which is governed by the IRS. FLSA Coverage for Nonprofits The FLSA’s minimum wage, overtime, record-keeping and child labor laws cover employees who work for businesses that …

New Law Makes 401(k) Hardship Withdrawals Easier

Currently, 401(k) hardship withdrawals are limited to elective deferrals made by the participant; other types of funds cannot be withdrawn. After making a hardship withdrawal, participants must wait six months before they can make new contributions. Also, participants must take available loans before making hardship withdrawals. The Bipartisan Budget Act, which takes effect in 2019, changes all of that. Major …

How to Manage a Cafeteria Plan

A cafeteria plan is a written employee benefits plan that meets the requirements of Section 125 of the Internal Revenue Code. Most commonly, cafeteria plans come in the form of premium-only plans and flexible spending arrangements. Cafeteria Plan Provisions With a premium-only plan, employees pay their premiums—such as for health, life, and disability insurance—with pretax dollars instead of on an …

Establishing Accurate Timekeeping Practices

The Fair Labor Standards Act (FLSA) requires that employers track hours worked by nonexempt employees, who typically are paid by the hour. Although you can choose your own timekeeping system, it’s essential that the records you keep are accurate and complete. System Options The evolution of technology has yielded an increased selection of timekeeping systems, including online web portals, mobile …

Make Your Next Open Enrollment Season the Best One Yet

Open enrollment allows employees to elect or change their benefit options during a certain period of time each year. It is typically a hectic period, as employees tend to have many questions about benefits during this time. The human resources (HR) team has the monumental burden of ensuring a smooth open enrollment for employees throughout the organization. To accomplish this, …