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2019 Tax Rates and Limits

We have provided a summary listing the Tax Rates and Limits in effect for 2019. The list includes payroll tax limits, the standard mileage rate as well as other limits.

2019 Tax Rates and Limits
Recent posts

Offering COBRA to a terminated employee’s domestic partner

Many employers offer coverage to employees’ domestic partners under their health care plans. If your organization does so, you need to determine what rights domestic partners have regarding COBRA insurance.

General principles

One common question for employers is whether terminated employees may elect to continue COBRA coverage for their domestic partners. The answer is yes; a terminated employee who elects to continue health plan coverage under COBRA may also elect coverage for a domestic partner who was covered under the plan immediately before the employee’s termination.

The domestic partner’s COBRA coverage depends on the employee’s coverage. In other words, the domestic partner will be covered until the employee’s COBRA coverage ends, whether due to failure to pay required premiums or because the coverage period has ended.

This is based on the general principle that COBRA coverage must ordinarily be the same coverage that the qualified beneficiary (in this case, the terminated em…

2018 Automobile Rules bulletin

The taxable income resulting from the personal use of automobiles provided by an employer is computed by the employer using guidelines established in the Internal Revenue Service regulations and must be reported on a Form W-2, Employee Wage and Tax Statement. This information is required to enable the employees to prepare their individual tax returns. The employee is to receive a Form W-2 no later than January 31, 2019.

For more information please see our  2018 Automobile Rules bulletin

IRS Announces Employer Provided Parking is Now Taxable

On December 10, 2018 the IRS released an advance version of Notice 2018-99 as interim guidance for taxpayers to use in determining the amount of parking expenses for qualified transportation fringe (QTF) benefits for tax-exempt organizations to determine the amount of unrelated business income tax (UBIT) attributable to parking expenses.
IRS Tax Notice 2018-99 release

Novak Francella ranks first in number of multiemployer plans audited

At the 2018 International Foundation of Employee Benefit Plans annual conference the Department of Labor conducted a training session titled "Conversations with the DOL". Included in the presentation is the list of accounting firms that service multiemployer benefit plans and Novak Francella was listed as the firm servicing the most plans! Follow the link for the full presentation ...

Full presentation

Tax Cuts and Jobs Act (TCJA) - Impact on Tax Exempt Organizations

The 2017 Tax Cuts and Jobs Act that was enacted late in 2017 made several changes to the tax laws affecting tax-exempt organizations, including a new Unrelated Business Taxable Income (“UBTI”) tax rate at a flat 21% for any UBTI over the $1,000 standard deduction.  Caution:  These changes will make some nonprofit organizations pay federal tax that have never been taxpayers in the past.

For more information see our client bulletin:

Bulletin

How gift card scammers target companies — and what you can do

Gift cards offer businesses a convenient way to reward employees and thank customers. However, as the FBI recently warned, gift card scams specifically targeting companies are on the rise. Since January 2017, losses from such fraud schemes have surpassed $1 million. Here’s what you need to know to avoid being cheated.

Anatomy of a scam

Fraudsters use classic “spoofing” strategies to execute what law enforcement terms Business Internet Compromise (BIC) scams. They email or text an employee, claiming to be someone who can authorize gift card expenditures, such as the company’s CEO or HR director.

Messages typically instruct the employee to purchase gift cards for the executive to give as gifts or to use for office expenses, such as holiday party supplies. The employee is told to send the gift card information, including card numbers and PINs, back to the “executive” (in reality, the scammer) who then cashes out the cards’ value. By the time the business catches on, it’s already too la…