518-373-4111
The new year is underway, and there have been several updates regarding certain benefits that your staff may be utilizing. Please see below for some important 2015 employee benefits changes.
FSA, HSA, and 401(k) Contribution Limits Increase in 2015
Several of the most common benefit plans and account types have an increased allowance for contribution limits in 2015. The IRS has announced that it will raise the annual dollar limit on contributions for health care flexible spending accounts (FSAs), health savings accounts (HSAs), and 401(k) accounts based on cost of living adjustments (COLAs). These limits are reviewed annually by the IRS.
Health Care Flexible Spending Accounts (FSA)– The maximum allowed amount that an employee can contribute to an employer-sponsored health care FSA is $2,550 in 2015 which is a $50 increase from the previously allowed amount of $2,500.
Health Savings Accounts (HSA)– The maximum allowed contribution amount for individuals to a Health Savings Account increases by $50 for 2015 going from $3,300 to $3,350. The limit for contributions for a family also increases in 2015 going from $6,550 to $6,650, an increase of $100.
401(k) Accounts– In 2015, employees may contribute up to $18,000 for the year to their 401(k) account. This is a $500 increase from 2014. This increase also applies to several other types of retirement accounts such as 403(b) accounts and profit-sharing plans.
Employers that offer FSA, HSA and 401(k) accounts should ensure that they have communicated these increases to their employees if the employer decides to adopt the higher limits for 2015. These increases may also require changes and revisions to existing written employer communications and to open enrollment materials.
IRS Standard Mileage Reimbursement Rate Increases
The Internal Revenue Service has issued its 2015 optional standard mileage rates. Effective January 1st, 2015, the IRS standard rate is 57.5 cents per mile driven for business purposes (an increase of one-and-a-half cents from the 2014 rate of 56 cents per mile). Use of this rate is optional, though it is widely seen by employers as a simple way to determine a standard rate for calculating mileage reimbursement for employees who use their personal vehicle for business purposes. If your organization uses the IRS rate to calculate mileage reimbursement, be sure to update your systems to account for this change.
For more information on these and other changes to tax and labor laws for 2015, contact GTM at (518) 373-4111.
