The following chart compares state vs federal tax treatment of common employer-provided fringe benefits, including group-term life insurance, moving expense reimbursements, educational assistance under IRC § 127, and retirement benefits under IRC § 401(k) plans and IRC § 125 Cafeteria plans.
HR and Payroll departments play a crucial role in forecasting and managing extra pay periods caused by the calendar. While they are a natural occurrence, failure to plan for them can lead to a surprising increase in payroll costs. Early preparation is essential to manage the financial impact and ensure smooth operations for all stakeholders.