© 2023 American Payroll Institute, Inc.
Inside this issue...
Two States, Virgin Islands Subject to FUTA Credit Reduction for 2023. ........................................................2
SSA Offers Tips to Employers Before Filing Season Begins. ...................................................................3
IRS Provides More Information on ERC Withdrawal Process. .................................................................4
IRS Releases 2024 Tables That Will Be Available in Publication 15-T. ..........................................................5
IRS Proposes Rules for §401(k)s for Long-Term, Part-Time Employees. ........................................................5
IRS Releases 2023 Form 944 and Instructions With Few Changes. ............................................................6
IRSAC Issues 2023 Annual Report. ...........................................................................................6
USCIS Provides Guidance for Employers Affected by Disasters. ...............................................................7
IRS Announces 2023 Will Be Transition Year for Change to Form 1099-K. .....................................................7
IRS Announces Quarterly Interest Rates .....................................................................................7
IRS Revises Application for Waiver From e-Filing. ............................................................................8
Employers Can Help Employees Pay Student Loans Through 2025. ..........................................................8
NLRB Extends Date of Final Rule on Joint Employer Status to February 26. ...................................................8
IRS Continues to Warn Businesses About Tax Scams. ........................................................................9
DOJ Secures Agreement With Apple to Resolve $25 Million in INA Violations. ...............................................10
IRS Achieves First Goal of Paperless Processing Initiative. ...................................................................10
Payroll Solutions. ..........................................................................................................11
Submit Your Questions for Agencies to Answer at Congress 2024 ...........................................................11
Court Rules Employer Did Not Violate FLSA When Policies Were in Place ....................................................11
Employers Should Encourage Employees to Check Withholding ............................................................12
Update on DOJ Tax Division Employment Tax Enforcement Actions. ........................................................13
Appeals Court Finds ACA Penalties Are ‘Taxes’. .............................................................................14
State and Local News. .....................................................................................................15
December 1, 2023 Volume 31 Issue 12
IRS Announces 2024 COLAs for Transportation Fringes, FSA Deferrals,
Foreign Earned Income Exclusion, and More
The IRS released cost-of-living adjustments (COLAs) for
2024 reflecting any increases in the flexible spending
arrangements (FSA) deferral limit, foreign earned income
exclusion, and excludable transportation fringes, among
other changes [Rev. Proc. 2023-34, 2023-48 IRB 1287].
Qualified transportation fringes
The amounts that may be excluded from gross income
for employer-provided qualified transportation fringe
benefits (transportation in a commuter highway vehicle
and any transit pass) and qualified parking for 2024 increase
to $315 ($300 in 2023).
Health FSAs
For plan years beginning in 2024, the dollar limitation
under IRC §125(i) on voluntary employee salary reductions
for contributions to health FSAs increases to $3,200 ($3,050
in 2023). For cafeteria plans that permit the carryover of
unused amounts, the maximum carryover amount increases
to $640 ($610 in 2023).
Standard deduction
The standard deduction amounts for 2024 increase
to $29,200 for married couples filing jointly or surviving
spouses ($27,700 in 2023), $14,600 for single taxpayers and
married taxpayers filing separately ($13,850 in 2023), and
$21,900 for heads of household ($20,800 in 2023).
Federal tax levies
The Tax Cuts and Jobs Act altered the way the amount
of wages, salary, or other income exempt from a federal tax
levy is calculated. For taxable years beginning in 2024, the
dollar amount used to calculate the amount determined
under IRC §6334(d)(4)(B) increases to $5,000 ($4,700 in
2023).
Foreign earned income exclusion
For 2024, the maximum foreign earned income
exclusion amount under IRC §911(b)(2)(D)(i) is $126,500
(up from $120,000 in 2023). The maximum amount of the
foreign housing cost exclusion is $17,710 (up from $16,800
Inside this issue...
Two States, Virgin Islands Subject to FUTA Credit Reduction for 2023. ........................................................2
SSA Offers Tips to Employers Before Filing Season Begins. ...................................................................3
IRS Provides More Information on ERC Withdrawal Process. .................................................................4
IRS Releases 2024 Tables That Will Be Available in Publication 15-T. ..........................................................5
IRS Proposes Rules for §401(k)s for Long-Term, Part-Time Employees. ........................................................5
IRS Releases 2023 Form 944 and Instructions With Few Changes. ............................................................6
IRSAC Issues 2023 Annual Report. ...........................................................................................6
USCIS Provides Guidance for Employers Affected by Disasters. ...............................................................7
IRS Announces 2023 Will Be Transition Year for Change to Form 1099-K. .....................................................7
IRS Announces Quarterly Interest Rates .....................................................................................7
IRS Revises Application for Waiver From e-Filing. ............................................................................8
Employers Can Help Employees Pay Student Loans Through 2025. ..........................................................8
NLRB Extends Date of Final Rule on Joint Employer Status to February 26. ...................................................8
IRS Continues to Warn Businesses About Tax Scams. ........................................................................9
DOJ Secures Agreement With Apple to Resolve $25 Million in INA Violations. ...............................................10
IRS Achieves First Goal of Paperless Processing Initiative. ...................................................................10
Payroll Solutions. ..........................................................................................................11
Submit Your Questions for Agencies to Answer at Congress 2024 ...........................................................11
Court Rules Employer Did Not Violate FLSA When Policies Were in Place ....................................................11
Employers Should Encourage Employees to Check Withholding ............................................................12
Update on DOJ Tax Division Employment Tax Enforcement Actions. ........................................................13
Appeals Court Finds ACA Penalties Are ‘Taxes’. .............................................................................14
State and Local News. .....................................................................................................15
December 1, 2023 Volume 31 Issue 12
IRS Announces 2024 COLAs for Transportation Fringes, FSA Deferrals,
Foreign Earned Income Exclusion, and More
The IRS released cost-of-living adjustments (COLAs) for
2024 reflecting any increases in the flexible spending
arrangements (FSA) deferral limit, foreign earned income
exclusion, and excludable transportation fringes, among
other changes [Rev. Proc. 2023-34, 2023-48 IRB 1287].
Qualified transportation fringes
The amounts that may be excluded from gross income
for employer-provided qualified transportation fringe
benefits (transportation in a commuter highway vehicle
and any transit pass) and qualified parking for 2024 increase
to $315 ($300 in 2023).
Health FSAs
For plan years beginning in 2024, the dollar limitation
under IRC §125(i) on voluntary employee salary reductions
for contributions to health FSAs increases to $3,200 ($3,050
in 2023). For cafeteria plans that permit the carryover of
unused amounts, the maximum carryover amount increases
to $640 ($610 in 2023).
Standard deduction
The standard deduction amounts for 2024 increase
to $29,200 for married couples filing jointly or surviving
spouses ($27,700 in 2023), $14,600 for single taxpayers and
married taxpayers filing separately ($13,850 in 2023), and
$21,900 for heads of household ($20,800 in 2023).
Federal tax levies
The Tax Cuts and Jobs Act altered the way the amount
of wages, salary, or other income exempt from a federal tax
levy is calculated. For taxable years beginning in 2024, the
dollar amount used to calculate the amount determined
under IRC §6334(d)(4)(B) increases to $5,000 ($4,700 in
2023).
Foreign earned income exclusion
For 2024, the maximum foreign earned income
exclusion amount under IRC §911(b)(2)(D)(i) is $126,500
(up from $120,000 in 2023). The maximum amount of the
foreign housing cost exclusion is $17,710 (up from $16,800
