• Use voicemail creatively. Voicemail isn’t just for taking messages, it can send them too. Changing your outgoing message to include the most frequently asked-for info (what days checks are mailed, deadlines for common forms, etc.) can head off an amazing amount of questions.
• Dedicate different lines for different tasks. If your phone system allows it, set up separate phone lines/voicemail boxes for your different internal and external “customers.” For example, you could direct callers with questions about vendor payments to one line, those looking for T&E reimbursements to another, and employees with questions about payroll or benefits to a third. That way, you can take care of related questions in one swoop, which should save time and mental energy.
• Create a FAQ page for Accounting. If, like most Accounting pros, you get the same few questions over and over, it’s time to create a set list of answers. Posted on the intranet, or even sent as a quarterly “reminder memo,” it’s a quick way to spread need-to-know info that makes everyone’s life easier.
• Maximize your e-payments software. No matter what software you use to process direct deposits, reimbursements and other payments, make sure you’re taking full advantage of its notification tools. Something as small as being able to e-mail folks that their anticipated payment just got processed can reassure them — and save you from having to handle one more phone call later on.

If IRS finds problems/misinformation is common enough, you can expect increased audits and enforcement in this area.

To claim the credit, you’ll need the proper documentation:

• Proof you received the employee’s share of the premium (35%)
• A declaration that the former employee was “involuntarily terminated,” and
• For insured plans, a copy of the invoice or similar statement from the insurance carrier, as well as proof the premium was paid on time.

You can claim your credit on Form 941, starting with the first quarter of ‘09.

IRS has also released a new FAQ page for employers who need more details on the new procedure. If employees (or former employees) have questions about their rights and responsibilities, you can refer them to this page, which has several links to even more info.

• New withholding rates. The “Making Work Pay” tax credit will most likely be implemented by having Payroll make two withholding adjustments: one in June of this year, and another at the start of Jan. 2010. (The maximum credit each year is $400 for singles. Because the ‘09 credit is effective mid-year, the weekly withholding will have to be re-adjusted in 2010.)
• COBRA coverage/reporting. Employees who are terminated between Sept. 1, 2008 and Dec. 31, 2009 are eligible for lower premiums on their COBRA coverage, starting Feb. 17, 2009. Eligible employees will now pay 35% of the premium. The rest will be paid by the employer — but you can recover the subsidy through a credit on your payroll tax deposits. (Note: The subsidy applies only to former employees whose income is less than $125,000 a year; or family income of under $250,000 a year.)
  That creates a few tasks for Accounting and Benefits pros: You’ll need to contact eligible former employees who rejected COBRA to let them know they are eligible at the new lower rate. You’ll also need to get up to speed on the reporting fast, since the first round is due for 1Q ‘09.
• Monitoring COBRA reimbursements from the feds. Related to the point above, if your COBRA premium subsidy is more than your tax deposit, you’ll have to request — and wait for — reimbursement from the feds. So far, there’s no word on how quickly that will be processed.
• Transportation fringe benefits. The new monthly limit on benefits for transit passes and vanpools has been increased to $230 per month, the same as for qualified parking. It’s in effect from March 2009 through December 2010.

In addition to these changes, you can expect employees will be confused about what they’re eligible for, what forms they have to fill out, etc. Be prepared for a slew of e-mails and phone calls. In particular, you may have many more employees who want to update their W-4s due to new tax credits that were tucked into the non-business portions of the law.

Consider putting together a resource you can hand out to answer the questions you’re more likely to hear. Even an e-mail with some links to IRS information releases can go a long way toward reducing how many times your phone rings over the next few weeks.

You can see the entire text of ARRA here.

You can use the cents-per-mile rule for any vehicles that meet the requirements of Sec. 1.61-21(e)(1).

But, the cents-per-mile rules don’t apply if the vehicle’s value exceeds these new dollar limits:

• $15,000 for a passenger vehicle other than a truck or van
• $15,200 for passenger trucks or vans.

If your company has a fleet of 20 or more vehicles  you may be able to use the fleet-average valuation rule instead.

For all the details, check out IRS’ Revenue Procedure 2009-12.

Here’s a three-step plan to “self-audit” your company’s own wireless charges to make sure you aren’t cutting checks for a penny more than you should be.

1. Consolidate. Allowing employees to use multiple carriers, giving phones to everyone in a given department, adding data plans to all phones regardless of whether the users need them — these are nice benefits for workers. But it makes your billing charges more complicated. And that makes it easier for overcharges and other errors to sneak through. Ask managers to look at who in their department needs these devices, and exactly what services they need. That move alone could slash your total wireless spending.
2. Set clear policies on usage. If a phone is for work use, it should technically be only for work use. (IRS considers non-work use of an employer-provided phone a taxable benefit.) It’s a rule a lot of employees — and employers — ignore. But it can have costly consequences. Not only will you be paying for more minutes in total. If auditors catch personal use being essentially subsidized by your company, it could become a major tax headache too.
3. Centralize. If multiple managers can sign off on phone and PDA expenses within their departments, you may not have a real idea of how much your company is spending. It also means you’re probably not getting the kind of volume discounts you’re entitled to. Having one central person go over all the bills also gives you a chance to see if there are any duplicate charges or unused services that your company is being invoiced for.

How do you manage payments for your company’s phone and wireless charges? Share your best practices in the comments.

With the economy taking a hit, managers may be more likely to offer employees low-cost perks to keep them happy — and at their desks. And with increased use of fringes, you can expect to field more questions about what’s taxable and why.

Here’s a refresher you can use to make sure your company is in compliance with IRS rules — and to pass along to any employees who may have questions.

1. If it’s cash, it’s reportable.  But remember, “cash” refers to anything that can be easily converted to cash, so that includes gift cards, gift certificates, etc. Other payments that fall under the fringe category are severance and vacation pay and  certain bonuses.
2. So-called “working condition” and de minimis fringes are exempt. This can include job training (paid or reimbursed), limited use of employer facilities and equipment for personal use (phone calls, copiers, etc.) and even the old-fashioned holiday turkey.
3. Services or goods offered for free or at a steep discount to employees are exempt. For example, if a hotel lets employees use un-booked rooms, a theater comps workers with unused tickets, etc.  If employees are buying the goods at a discount, the exemption is in place as long as the discount isn’t more than the gross profit percentage.
4. Other fringes that are specifically named as exempt in the tax code include: Moving and transportation expenses, qualified tuition or educational assistance, cafeteria plans, dependent care, etc. Note: Even these fringes may be subject to certain limits to remain exempt. For example, you can only reimburse transportation expenses of $115 per month (in 2008). Any amount over that is taxable.

For all the details on how to report and track fringes, or to check on a specific benefit’s tax status, check out IRS’ guide to fringe benefits.

1. the store participates in the inventory information approval system, or
2. on a store-by-store basis, 90% of the store’s gross receipts for the prior taxable year were items which qualify as expenses for medical care (including nonprescription medications).

The deadline has been extended by six months to June 30, 2009.

You can get all of the details from IRS Notice 2009-104.

As part of the Emergency Economic Stabilization Act of 2008, the feds made official a new transportation fringe benefit.  Here’s the scoop:  

For tax years starting after Dec. 31, 2008, your company can offer a “qualified bicycle commuting reimbursement” as a fringe. For any employees who regularly use their bikes to travel to and from work, you can reimburse up to $20 per month for costs related to buying, repairing and/or storing the bike.

Note: The $20 only applies to “qualified bicycle commuting months.” Although we don’t have a solid definition of that yet, it’s safe to assume employees will have to make a certain percentage of their commute by bike to qualify each month.

With gas still expensive and most folks looking for a way to cut costs, this is a nice little benefit your employer can offer — at relatively little cost.

The latest changes are a result of the passage of the Emergency Economic Stabilization Act (EESA). Among the most important:

• FUTA surtax extended– The planned decrease to 6% that was supposed to go into effect on Jan. 1, 2009 has been cancelled. Under the new law, the surtax will be extended through Dec. 31, 2009.
• New transportation fringe benefit  – For tax years starting after Dec. 31, 2008, companies may offer a “qualified bicycle commuting reimbursement” as a fringe. It allows you to reimburse for the purchase, repair and/or storage of a bicycle that is used regularly for travel between the employee’s home and work. (More on this here.)
• Equity for mental health — Group health plans must now provide equity for mental health or substance abuse  benefits. The law takes effect for plan years that begin one year after the date of enactment of the EESA
• Work Opportunity Tax Credits extended — For certain employees working in the disaster area of Hurricane Katrina, the WOTC has been extended through Aug. 28, 2009.

You can see the full text of the law here.