Learn the Difference Between Pretax and After-Tax

Deductions Taken Before Taxes Pretax deductions are subtracted from employees’ wages before taxes are taken out, thereby lowering their taxable wages and increasing their take-home pay. For a deduction to be eligible for pretax status, the employer must have an Internal Revenue Service-compliant plan document on file. For example, you need a Section 125 plan document to[…]

New Disability Claims Rule for Welfare Benefit Plans

On December 19, 2016, the U.S. Department of Labor announced a new rule updating the process for reviewing claims and appeals for disability benefits covered by ERISA. Initially, the final rule was supposed to apply to all claims filed on or after January 1, 2018. But the rule was delayed for 90 days, pushing the[…]

Know the Rules on Classifying Employees

The Fair Labor Standards Act (FLSA) sets guidelines for whether an employee is exempt or nonexempt under federal law. Exempt means that the employee is excluded from the Act’s overtime pay provisions and therefore does not have to be paid overtime for work hours exceeding 40 hours in a week. Nonexempt means that the employee[…]