Winter 2019 Non-Profit Newsletter
In this Issue:
- Power of Real-Time Insights to Improve Donor Communications
- GASB Proposes Guidance to Address the Phaseout of Interbank Offered Rates
- FASB Issues Proposed Standard Related to Reference Rate Reform
- Tax Exempt & Government Entities Division Releases 2020 Program Letter
- Vet or Forget? The Case for Background Checks for Nonprofit Board Members
- Test Your Cyber Systems in 7 Steps
- What Plan Sponsors Need to Know About DOL Enforcement and Red Flags
November 2019 Newsletter
In This Issue:
- Taxation of Employees’ Personal Use of Company Vehicles Simplified by New IRS Regulations
- 2020 Cost-of-Living Adjustments for Qualified Retirement Plans
- Nonprofit Heart, Business Mindset Mission-Driven Growth
- Errors That Can Be Costly for Small Businesses Leadership
- Spotlight: Brian Schepperley
Taxation of Employees’ Personal Use of Company Vehicles Simplified by New IRS Regulations
Personal use of a company vehicle generally results in taxable wages for the employee. But sorting out the amount to tax can be confusing. The following provides a high-level summary of the Internal Revenue Services’ (IRS) current rules for taxing employees for their personal use of a company vehicle.
Nonprofit Heart, Business Mindset Mission-Driven Growth
In business and economics, the concept of supply and demand is simple. Supply will rise or fall to meet demand, and the price of a service or commodity adjusts accordingly. But in the nonprofit world, it’s not so easy. Demand for nonprofit services is ever-increasing, and supply depends on more than market opportunity and on more than the intention of the mission.
2020 Cost-of-Living Adjustments for Qualified Retirement Plans
The Internal Revenue Service (IRS) and the Social Security Administration (SSA) have each announced 2020 cost-of-living adjustments (COLA). The IRS adjustments increased annual compensation amounts and limits for elective deferrals as well as catch-up contribution limits for age 50+ employees, but other catch-up contribution limits remain unchanged. Those receiving Social Security and Supplemental Security Income benefits will receive a 1.6 percent increase in benefits effective January 2020. The SSA also announced an increase in the taxable wage base (that is, the maximum amount of earnings subject to Social Security tax) for 2020. The table below highlights selected IRS COLA amounts for 2020 and prior years as well as the SSA taxable wage base amounts for similar periods.