Managing Unemployment Insurance Costs
The world of unemployment tax can be overwhelming and bewildering. It doesn’t have to be. Join us and our guest speaker, Cynthia Anderson, Taxpayer Educator with the EDD for breakfast on Tuesday, March 19, 2013 and learn:
- How the unemployment insurance rate is established.
- What is an unemployment insurance reserve account.
- Important notices and statements.
- How to minimize unemployment insurance costs.
Cynthia Anderson has been with the California Employment Development Department’s Tax Branch for 32 years. She began her state service as a Tax Auditor in the Santa Clara County. Since 2002 she has been the Employment Tax Consultant for the Taxpayer Education and Assistance Program in Northern California. She assists taxpayers in resolving issues and conducts employment tax seminars. These seminars educate taxpayers with regard to State payroll tax requirements and employment status in Northern California. Cynthia received her BS Degree in Business Administration with a concentration in Accounting from California State University, Hayward.
Employers with more than 10 employees that have not been exempted based on a low hazard level, must post Form 300A, the Summary of Work-Related Injuries and Illnesses, in a workplace common area annually from Feb. 1 to April 30.
The 300A summary must be posted at each job site in a conspicuous area where notices to employees are customarily placed. Form 300A reports an employer’s total number of deaths, missed workdays, job transfers or restrictions, and injuries and illnesses as recorded on Form 300. It also includes the number of workers and the hours they worked for the year. Please refer to the direct link on the DOL here-http://www.osha.gov/recordkeeping/RKforms.html
As a result of the American Taxpayer Relief Act of 2012 (HR 8), Federal law allows employers three ways to reduce the cost of commuting via public transportation (bus, train, ferry or registered vanpool) or qualified parking for employees. Companies can offer employees:
1. a tax-free employer-paid subsidy
2. a pre-tax employee-paid payroll deduction, or
3. a combination of the above (shared employee- employer-paid)
Tax-exempt and pre-tax limits are set by the IRS. The following are the limits for the 2013 tax year, but the effective date may allow for retroactivity back to January 1, 2012 if an employer so chooses:
- $240 per employee per month for vanpool, bus, ferry, rail (all public transportation)
- $240 per employee per month for qualified parking, or
- $480 per month per employee for both public transportation and qualified parking.
When the employee pays part or all of the cost of public transportation via a pre-tax payroll deduction, the employee can set aside up to $240 a month of pre-tax income. The employee saves federal withholding and FICA payroll taxes on the amount deducted. The employer saves paying FICA on the amount deducted. Employees may also share the cost with employers using after tax income. Pre-tax payroll deductions are referenced in the Internal Revenue Code, Section 132(F), as amended by TEA-21, Title IX, Section 910.