Compliance Stuff

The US Department of the Treasury and the Internal Revenue Service have finalized regulations under the SECURE 2.0 Act that change how certain retirement plan participants may make catch-up contributions. Beginning in 2026, participants whose income meets certain thresholds and who are eligible to make catch-up contributions may, in many cases, only be permitted to do so on a Roth (after-tax) basis.  While these rules apply to nearly all defined contribution retirement plans, they raise unique administrative and compliance challenges for multiemployer defined contribution plans, which are those defined contribution plans to which more than one employer is obligated to contribute and which are maintained pursuant to one or more collective bargaining agreements (CBAs) .  Although the rules include temporary relief for collectively bargained plans, multiemployer plans should begin planning now.  What the Final Regulations Require The Roth catch-up requirement applies only if...

Takeaways The potential for expanded use of National Guard and Reserve forces makes USERRA compliance for employers critical. USERRA’s broad, mandatory protections for employees include military leave and some benefits continuation.  With strict bans on discrimination or retaliation tied to past, current or future military service, employers’ proactive policy review and manager training are essential. Article The recent United States military engagement in the Middle East, as well as significant domestic deployments in multiple large cities in 2025 and 2026, underscores the increasing reliance on National Guard and Reserve forces. Recruitment trends indicate an expanded operational role with nearly 50,000 National Guard enlistees added in 2025 . At this time, understanding employers’ compliance obligations under the Uniformed Services Employment and Reemployment Rights Act (USERRA) is more important than ever. USERRA guarantees the rights of military service members to take a leave...

As health care costs continue to rise, benefits professionals  play a critical role in helping employees manage their out-of-pocket medical expenses . One of the most effective tools at their disposal is a health flexible spending account (FSA), an employer-sponsored account that allows employees to set aside pre-tax dollars for qualified health care costs.  In a positive development,  the IRS has increased the annual FSA contribution limit to $3,400  for 2026, up from $3,300 in 2025 and $3,200 in 2024. This adjustment, tied to inflation through the Chained Consumer Price Index, reflects the reality that health care is becoming more expensive and underscores the need for ongoing benefits education.  For HR professionals, this change represents an opportunity to strengthen communication, improve enrollment outcomes, and reinforce the organization's commitment to employee financial wellness.  Understanding the FSA Advantage FSAs allow employees to contribute...

In a sweeping move set to reshape employee paychecks, the newly enacted One Big Beautiful Bill Act (OBBBA) introduces two significant federal tax deductions for hourly workers: one for overtime pay and another for tip income. Dubbed the “No Tax on Overtime” and “No Tax on Tips” provisions, these changes mean that from 2025 through 2028, many employees can exclude a portion of their overtime wages and tip earnings from federal taxable income . This offers a welcome tax break for workers across various sectors – from nurses and factory employees logging extra hours to servers and bartenders collecting tips. However, it also raises key wage-and-hour considerations for employers nationwide. Businesses of all kinds must navigate new payroll reporting requirements, adjust withholding practices, and consider broader impacts on compensation structures and labor strategies. This alert provides an overview of the OBBBA’s deductions, explains who is affected, and outlines best practices for emplo...

Takeaway Payroll compliance refers to how companies follow laws related to payroll and payroll taxes, such as the Fair Labor Standards Act. Businesses that fail to ensure compliance in payroll processes can find themselves subject to fines, audits, lawsuits and other penalties for violations. Organizations should rely on effective HR and payroll software to automate and streamline the tedious, manual processes that support payroll compliance. Every year brings the potential for new employment laws. And legislation that affects payroll is no exception. For employers, failing to ensure payroll compliance opens the door to issues like: costly noncompliance fines untimely audits and other penalties payroll mistakes Compliant payroll may seem like a tall order because it  is . At the same time, compliance is necessary to ensure the long-term success of a business and fair, equitable treatment for its employees. Let’s dive into how payroll compliance works, some of the common laws that i...