Compliance Update

2019 Important IRS & Other Guidelines/Limits

 

 

Effective in 2019, the percentage paid for disability benefits and Paid Family Leave increases from 55% to 70% for those that earn less than one-third of the State’s
average quarterly wage during the prior four quarters or 60% for those that earn a higher amount. The law has a sunset provision after 2021. The seven-day waiting period for Paid Family Leave has been eliminated.

 

Flexible Spending Account:

 

Maximum Contribution:                                                                              $ 2,700

[applies only to
employee contributions]

 

For
employer contributions, the maximum (on top of any employee contributions), is the higher of $500 or an amount equal to a dollar for dollar match of the employee contribution.

                                   

Dependent Care Assistance Program:

 

Flex Plan:

           Maximum Contribution:                                                                   $ 5,000

[for any number of dependents]

 

Federal Tax Credit:

           Credit Based on Eligible Expenses for One Dependent:             $ 3,000

           Credit Based on Eligible Expenses for 2+ Dependents:              $ 6,000

 

Qualified Transportation Fringe Benefit per Month

 

Qualified Parking                                                                                                 $265

Transit Passes                                                                                                       $265

 

Qualified Adoption

 

Employer Provided                                                                                        $14,080

(Phase out starts at MAGI $211,160, goes to zero at $251,160.)