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In This Issue
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1. 2007 EEO-1 Survey
2. Employee Plans News
3. Resources for Small
Businesses
4. Disaster Preparedness |
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IRS News & Info
Safeguarding Taxpayer Information Putting data security safeguards in place helps prevent fraud and identity theft, and enhances customer confidence and trust. IRS Pub 4557 helps businesses, organizations, and individuals that handle taxpayer data understand and meet their responsibility to safeguard taxpayer information.
Treasury Updates Homepage The U.S. Treasury's homepage has a new look. For more information, click here or visit www.treasury.gov.
Taxpayer Advocacy Panel makes 58 Recommendations to the IRS for Reducing Taxpayer Burden and Improving Taxpayer Service in its Annual Report.
More Tax Ideas and News from the IRS
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Be sure to check out the Human Resource section in BenefitsEssentials and our NewsBlog for late-breaking Tax, benefits and HR News.
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Spotlight on:
The New 2007 EEO-1 Survey
Beginning in 2007, employers, including Federal contractors, are required to collect and report data about the racial, ethnic, and gender composition of their workforces on a revised Standard Form 100, Employer Information Report EEO-1.
The EEO-1 report must be filed by employers with federal government contracts of $50,000 or more and 50 or more employees; and employers who do not have a federal government contract, but have 100 or more employees. The revised EEO-1 report must be filed for the first time in calendar year 2007 by September 30, 2007.
The old EEO-1 report called for workforce data to be broken down by nine job categories, using five race and ethnic categories. The revised EEO-1 report contains changes to the race and ethnic categories. A new category titled "two or more races" has been added, and the category "Asian or Pacific Islander" has been divided into two separate categories - "Asian" and "Native Hawaiian or other Pacific Islanders." In addition, the approved revisions include an increase in the number of job categories as a result of dividing the Officials and Managers category into two subgroups - Executives/Senior Level and First/Mid Level Officials. These and other changes are discussed in the Federal Register notice 70 FR 71294, available on EEOC's website at www.eeoc.gov.
How to File the EEO-1
The EEO-1 Report, is required to be filed with the U.S. Equal Employment Opportunity Commission's EEO-1 Joint Reporting Committee. The filing deadline for the 2007 EEO-1 Survey is September 30, 2007. Notification letters were to be mailed to employers beginning in July 2007.
The preferred method for completing the 2007 EEO-1 reports is the web-based filing system. Online filing requires you to log into your company's database with a Login ID and Password. All companies should have received 2007 EEO-1 filing materials by mail no later than mid August 2007. If you cannot locate your Login ID and/or Password, contact the EEO-1 Joint Reporting Committee at e1.techassistance@eeoc.gov.
For additional information, see:
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Employee Plans News
The IRS has published a Special Edition of its Employee Plans newsletter, announcing that the 2007 Interim and Discretionary Amendments are now available. Interim amendments are required to keep a written plan document up to date between a plan’s submission periods during the applicable remedial amendment cycles. The 2007 list includes the final regulations under § 401(a) with respect to low normal retirement age and the final regulations under § 415.
Also in this Special Edition:
- New FAQs added for the preapproved and individually designed plan program,
- The definition of "Normal Retirement Age" has changed, and
- Requirements for "Separate Agreements" for Section 412(i) Pension Plans.
Definition of Normal Retirement Age Has Changed
The Defined Benefit Listing of Required Modification (DB LRM) package, released in June, has been modified. The DB LRM is prepared by the IRS to aid Sponsors of Master or Prototype Plans. The information package contains sample plan language and plan provisions. It is designed to assist sponsors who are drafting or redrafting plans to conform to applicable law and regulations.
The August changes (DB LRM - 08-2007) amended DB LRM #14 to grant temporary relief until the effective date of the revised definition of normal retirement age. The IRS has provided sample plan and adoption agreement language to conform with the definition of normal retirement age in accordance with IRC §411(a)(8) and Regs thereunder.
Sample Plan Language:
Normal retirement age is the age selected in the adoption agreement. If the employer enforces a mandatory retirement age, the normal retirement age is the lesser of that mandatory age or the age specified in the adoption agreement.
2007-2008 Priority Guidance Plan
The Treasury Department’s Office of Tax Policy and the IRS released the 2007-2008 Priority Guidance Plan, which lists regulatory initiatives the Service is expected to publish in the upcoming year. It includes 26 items for the retirement benefits area, including:
- Notice 2007-69, providing transitional relief and guidance on the “normal retirement age” definition under final regulations that were released in May 2007,
- Proposed regulations on the income tax treatment of incidental health insurance benefits provided under a qualified plan, and
- Notice 2007-67, extending the transitional relief provided to Indian tribal governments as to whether a retirement plan is a governmental plan under Code §414(d) as amended by the 2006 Pension Protection Act.
To read the August 2007 Special Edition, please access the newsletter file directly or visit the Current Edition of the Employee Plans News page in the Retirement Plans Community section of the www.IRS.gov Web site. More information on the 2007 - 2008 Priority Guidance Plan is available here.
See also: IRS Retirement News for Employers, Summer 2007 newsletter.
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Resources for Small Businesses
Recordkeeping – It’s More than Just Paperwork
Keeping good records is very important for your business. You need good records to monitor the progress of your business, keep track of deductible expenses, prepare tax returns and support the items you report on tax returns.
The two questions that most employers often ask with regards to recordkeeping are:
What kinds of records should I keep?
You may choose any recordkeeping system suited to your business that clearly shows your income and expenses. Except in a few cases, the law does not require any special kind of records. However, the business you are in affects the type of records you need to keep for federal tax purposes. For more information, click here .
How long should I keep records?
The length of time you should keep a document depends on the action, expense, or event the document records. You must keep your records as long as they may be needed to prove the income or deductions on a tax return. For more information, click here .
Employment Tax Records
Among the various items that must be kept, are employment tax records. Keep all records of employment taxes for at least four years. These should be available for IRS review. Records should include:
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Your employer identification number.
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Amounts and dates of all wage, annuity, and pension payments.
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Amounts of tips reported.
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The fair market value of in-kind wages paid.
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Names, addresses, social security numbers, and occupations of employees and recipients.
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Any employee copies of Form W-2 that were returned to you as undeliverable.
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Dates of employment.
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Periods for which employees and recipients were paid while absent due to sickness or injury and the amount and weekly rate of payments you or third-party payers made to them.
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Copies of employees' and recipients' income tax withholding allowance certificates (Forms W-4, W-4P, W-4S, and W-4V).
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Dates and amounts of tax deposits you made.
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Copies of returns filed.
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Records of allocated tips.
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Records of fringe benefits provided, including substantiation.
For additional information, see:
Also, be sure to refer to the Human Resources and Tax sections in www.BenefitsEssentials.com for more information.
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Disaster Preparedness for Hurricane Season
In our last issue, we noted that the National Oceanic and Atmospheric Administration (NOAA) had updated its Hurricane Preparedness Web site for this year’s hurricane season. As the hurricane season is upon us, and we have already witnessed several major Class 5 storms already, we thought it prudent, to include this updated information for the benefit of our readers.
Hurricane hazards come in many forms: storm surge, high winds, tornadoes, and flooding. This means it is important for you to have a plan that includes all of these hazards. History teaches us that a lack of awareness and preparation are common threads among all major disasters. By knowing your vulnerability and what actions you should take, you can reduce the effects of a disaster.
For Additional Information:
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