The Society for Human Resource Management (SHRM) provided this update on January 8, 2013:
Tag Archives: irs
In October, the IRS announced the cost-of-living adjustments to dollar limitations for 2013 retirement plans. Xenium partner, Principal, provided us with a year over year comparison of the limits taking effect January 1, 2013.
| Limit | 2012 | 2013 |
The IRS issued this statement on February 23, 2012 regarding the Payroll Tax Extension:
“WASHINGTON — The Internal Revenue Service today released revised Form 941 enabling employers to properly report the newly-extended payroll tax cut benefiting nearly 160 million workers.
On December 23, 2011, the IRS announced that the Social Security payroll tax cuts, enacted at the beginning of 2011, would be temporarily extended into 2012. Read the entire news release:
The IRS has announced the cost-of-living adjustments to dollar limitations for retirement plans for 2012. Here is a look at the changes from 2011 to 2012:
| Limit | 2011 | 2012 |
| Compensation Limit | $245,000 | $250,000 |
The IRS has spoken! There will be no cost-of-living adjustments to qualified retirements plans in 2010. This announcement comes in an unsteady economy, which has shown a slight decrease in the relevant cost-of-living index from September 30, 2008 to September 30, 2009.
The COBRA Subsidy is continually evolving. In a notice published March 31, 2009, the IRS addresses a number of significant issues resulting from the new COBRA Subsidy. Most important, the new notice clarifies the term “involuntary termination” and how the COBRA premium reduction is calculated. For example, when an employee accepts a severance package rather than face the prospect of an announced reduction in force or when an employee quits rather than accept a position with significantly reduced hours, the termination of employment will be considered “involuntary” for purposes of the COBRA subsidy. Click here to read the full notice: http://www.irs.gov/pub/irs-drop/n-09-27.pdf.