Fringe Benefits

Vegging Out at Work in Company Gardens
Excerpt:"More companies are ripping out manicured lawns to create on-site vegetable gardens as healthy perks or volunteer opportunities for employees."(Star Tribune)

New York Employers Must Provide Funeral and Bereavement Leave to Employees in Same-Sex Relationships (PDF)
1 page. The law is slated to become effective October 30, 2010. (Nixon Peabody LLP)

Paid Time Off for Volunteering
Excerpt:"Corporations that provide employees paid time off to volunteer typically pursue one of two routes: setting a designated volunteer day or providing a block of paid hours annually. Which approach works best depends upon the employees involved, as well as what company officials want to achieve through the volunteer initiative, experts say."(Workforce Management; free registration required)

2010 New York State Legislative Update Relevant to New York Employers
The New York State Legislature enacted and the Governor signed a number of laws: the Domestic Workers Bill of Rights, Funeral Leave Benefits for Same-Sex Couples, and Health Benefits for Volunteer Firefighters and Ambulance Workers. (Jackson Lewis LLP)

New York Enacts Bill of Rights for Domestic Workers
Excerpt:"[The new law] amends New York Labor Law to entitle domestic workers to receive overtime pay, one day of rest per week or overtime pay when they work on their day of rest, and three days of paid time off after one year of employment."(Littler Mendelson P.C.)

Perks/Alternative'Rewards'Substitute for Fatter Paychecks
Excerpt:"Flextime -- allowing individuals to alter their working hours -- can be an attractive reward for hard-working employees. . . . Another option is getting employers to pay for courses, seminars and conferences, or membership to professional groups . . . ."(Columbia Daily Tribune)

Survey Finds Fewer Companies Continuing Benefits during Unpaid Non-FMLA Leaves
Excerpt:"According to the survey of Family Leave practices by BLR, 58% of responding companies allow benefits to continue, a significant decrease from the 73% of respondents who had such a policy in late 2007."(PLANSPONSOR.com)

[Guidance Overview] IRS Information Letter Discusses Qualified Transit and Parking Benefits That Are Provided Using Smartcards
Excerpt:"EBIA Comment: This information letter analyzes and approves a smartcard that is commonly offered to employees -- one that works for both transit and parking -- so long as separate purses are used for the mass transit and parking benefits. In fact, it is the first official guidance that approves the use of such cards for parking."(Employee Benefits Institute of America)

Plan to Cut Vacation Time for Shelby County, Tennessee, Employees
Excerpt:"While the measure would save the county thousands of dollars, it would also lump workers'vacation, sick, bonus and bereavement time into one category; reducing the total time off in some cases from 61 days to 35."(Newport Television LLC)

Vision Benefit Plan Design a Powerful Tool in Employee Health Promotion
Excerpt:"Because optometrists can (and do) look at blood vessels during an eye exam, they can help identify symptoms of ? and manage ? a variety of conditions that might not otherwise be detected at a pre-symptomatic stage."(Employee Benefit News; free registration required)

Pennsylvania Bill Would Mandate Workplace Sick Leave
Excerpt:"An Allegheny County state legislator wants all full-time workers in Pennsylvania to get 6 1/2 days of paid sick time per year, an idea that is going over well with labor unions and women's groups but not so well with some business owners."(Pittsburgh Post-Gazette)

[Guidance Overview] Employer-Sponsored Leave-Based Donation Programs Not Available for Haiti Earthquake Victims
Excerpt:"EBIA Comment: Employer-sponsored leave-based donation programs should not be confused with leave-sharing programs under which employees may donate unused leave to their co-workers."(Employee Benefits Institute of America)

FAA May Ease Stance on Reimbursements for Personal Use of Company Jet
Excerpt:"The FAA announced on July 8 it is revisiting a longstanding interpretation that effectively blocks flight operators -- employers, as the case may be -- from accepting reimbursement for the cost of personal, non-business flights operated under the non-commercial rules of Part 91 of the Federal Aviation Regulations (FARs). The FAA is digesting public comments on the re-interpretation before making the revision final."(Thompson Publishing Group Inc.)

Audio and Text: Unlimited Vacation Time Not a Dream for Some
Excerpt:"Why the uptick in unlimited paid leave now? Studies have long shown that -- believe it or not -- such flexibility actually makes workers more productive and engaged. But Lenny Sanicola, with the human resources group World at Work, which surveys company benefits, suspects something more. Sanicola notes that with all the perks being cut during the recession, vacation time has held its own."(National Public Radio)

Low-Cost, High-Impact Employee Benefits
Excerpt:"No matter how loyal, hard-working, or committed your employees may be, it's hard for them not to feel discouraged or unappreciated when their paychecks shrink. But money isn't the only motivator. Consider creative ways to show appreciation and boost team morale without hurting the bottom line."(Morningstar)

IRS Will Scrutinize Fringe Benefits During Employment Tax Audits
Excerpt:"[The IRS'] Employment Tax National Research Project . . . will initially focus on issues the IRS had already identified as commonly giving rise to compliance problems, including employee/independent contractor classification, fringe benefits, employee reimbursements, and executive compensation."(Pillsbury)

Economic Downturn Influencing Rewards Strategy (PDF)
Excerpt:"[This article] looks at Hay Group's Changing Face of Reward research and examines how the business drivers of rewards are changing due to the impact of the global downturn and other macroeconomic trends in the global economy."(Premium Incentive Products Magazine)

Bereavement Leave for the 21st Century
Excerpt:"[While working on a bereavement leave policy,] we settled for common sense and humanity. Here is what is in the works: The nonprofit'realizes that this list is illustrative, not exhaustive, and that there are many nontraditional relationships that can be no less important to our employees. If you believe that bereavement leave is appropriate in your circumstances, please let [designated person] know, and we will work with you.'"(Work Matters)

Employers Get Creative with Incentives When Money Is Tight
Excerpt:"Employers are paying for business coaching and college tuition, training staff, subsidizing meals and extending family leave to ensure high productivity and strengthen themselves for post-recession expansion."(North Jersey Media Group)

[Guidance Overview] DOL's Guidance on FLSA Lactation-Break Requirement
Excerpt:"DOL has not specified any minimum number of, frequency of, or duration for these breaks. It says only that the amount of time must be'reasonable', and that the breaks must be permitted'as frequently as needed'by the employee."(Fisher&Phillips LLP)

Quantifying the Benefits Workshifting Has for Employers, Employees and the Community (PDF)
23 pages. Excerpt:"Workshifting, and in particular, home-based work, offers a relatively simple, high return-on-investment solution to some of the nation's most vexing problems . . . ."(Telework Research Network / Aerodite, Inc.)

Majority of Employers Offer Telecommuting, According to Survey
Excerpt:"Of those companies, two-thirds have offered telecommuting for three years or more."(PLANSPONSOR.com)

New Employee Perk: Cash for Flying in Coach
Excerpt:"Airlines may not want to hear this, but at least one company that sends thousands of employees on business trips, is successfully encouraging them to fly coach instead of business class. How? By paying them half the savings in air fare."(Thompson Publishing Group Inc.)

Illness-Related Work Absences During Flu Season (PDF)
4 pages. Excerpt:"The level of absence due to a worker's own illness, injury, or medical appointment was higher in the winter of 2007?08 than at any other period covered in this analysis, reaching a high of 3.3 million in February 2008."(U.S. Bureau of Labor Statistics)

IRS/Treasury Officials Provide Informal Views on Variety of Benefit Topics, Including Leave Sharing, HSAs, and 401(k) Plans
Excerpt:"While the answers in the report [on the views and remarks of the officials] do not necessarily represent IRS or Treasury policy, they provide helpful insight regarding the issues addressed."(Employee Benefits Institute of America)

Unscheduled Absence Costs Employers 8.7% of Payroll, According to Survey
Excerpt:"The total costs, direct and indirect, of all major absence categories average 35% of base payroll, ranging from 29% for exempt employees, 36% for nonexempt salaried, 39% for nonunion hourly workers and 38% for union hourly."(Wolters Kluwer)

Paid Time Off Seen as Talent Attraction Tool, According to Survey
Excerpt:"A WorldatWork news release said the survey, ???Paid Time Off Programs and Practices,??? found 70% of those firms with a paid time off (PTO)-type leave bank and 60% of those with a traditional system gave that response."(PLANSPONSOR.com)

Paid Sick Days: Attitudes and Experiences (PDF)
44 pages. Excerpt:"Americans overwhelmingly view paid sick days as a basic labor standard. It is rated as more important than several workers??? rights already required by law."(Public Welfare Foundation)

Improper Sick-Leave Deal May Cost Atlantic City School District $3 Million
Excerpt:"The school district may have to pay nearly $3 million to the state's pension fund for an allegedly improper attempt to spur early retirements with special financial incentives, according to documents . . . ."(Press of Atlantic City Media Group)

Most Americans Say Paid Sick Days a Basic Worker's Right
Excerpt:"Researchers at the National Opinion Research Center at the University of Chicago found 75% of survey respondents consider paid sick days a basic worker's right, and 75% believe that employers should be required by law to provide paid sick days to workers."(PLANSPONSOR.com)

IRS Rulings on a Paid Leave to 401(k) Transfer
Excerpt:"A participant may elect to contribute PTO time to the 401(k), which would otherwise be cashed out. Similar to the prior ruling, automatic pour-overs to the 401(k) are treated as employer contributions, and employee elections are treated as amounts subject to the Section 401(k) limitations."(Employee Benefit News; free registration required)

Changes in Federal Workers'Leave Benefits Extended to Heterosexual Partners and Grandparents
Excerpt:"Federal workers may use sick leave or funeral leave in cases of ailing or deceased domestic partners starting July 14, the Office of Personnel Management said . . . . Unlike other recent changes to federal personnel policies that apply only to same-sex partners, the new orders also apply to opposite-sex domestic partners."(The Washington Post; free registration required)

Federal Employees and Families Lack Paid Parental Leave Benefits
Excerpt:"[O]ne potential benefit that Congress still is haggling over is paid parental leave. The House approved paid parental leave for federal employees last June; legislation has stalled, however, in the Senate."(GovernmentExecutive.com)

Washington-Baltimore Area Benefits Survey: Part-Timers Getting More Perks
Excerpt:"Employers in the Washington-Baltimore region offered part-time workers better perks this year, such as paid days off, in lieu of creating full-time positions, according to an annual survey of human resources officials to be released [today]."(The Washington Post; free registration required)

Paid Sick Days and Vacations Proposed for Maids, Nannies by the New York Senate
Excerpt:"The Domestic Workers Bill of Rights -- which stalled last year with the Senate coup -- has re-emerged and will be brought to a vote in the Senate on June 1. The bill, which would provide domestic workers such as nannies and maids with paid sick days, holidays and vacation days, and require advance notice of their termination . . . ."(Workforce Management; free registration required)

[Guidance Overview] IRS Issues Final Rule on Qualified Non-Personal Use Vehicles
Excerpt:"The IRS has added an item to the list of government-owned vehicles public employees may use for personal purposes occasionally without triggering the need to keep records of business vs. personal use. Effective May 19, the IRS will recognize'clearly marked public safety officer vehicles'as qualified nonpersonal vehicles that enjoy an exemption . . . of the regulations, regardless of whether the employee using them is a fire or police department employee."(Thompson Hine LLP)

[Official Guidance] Text of Final IRS Regs on Qualified Non-Personal Use Vehicles; Clearly Marked Safety Officer Vehicles Now Qualify (PDF)
Excerpt:"This document contains final regulations relating to qualified non-personal use vehicles as defined in section 274(i). Qualified non-personal use vehicles are excepted from the substantiation requirements of section 274(d)(4) that apply to listed property . . . . These final regulations add clearly marked public safety officer vehicles as a new type of qualified nonpersonal use vehicle. . . . These regulations apply to uses of clearly marked public safety officer vehicles occurring after May 19, 2010."(Internal Revenue Service)

Work-Life Benefits Now Integral to Total Rewards Package
Excerpt:"The majority (59%) of respondents to the State of Total Rewards Integration survey include work-life (flexible work schedules, extra vacation and sabbaticals) in addition to compensation (base salary, incentives and guaranteed payments) and benefits (retirement and medical) in their definition of Total Rewards."(PLANSPONSOR.com)

[Official Guidance] What Should Be On 2010-11 Guidance Priority List? IRS Wants to Know (PDF)
4 pages. Excerpt:"[T]he Guidance Priority List [is used] each year to identify and prioritize the tax issues that should be addressed through regulations, revenue rulings, revenue procedures, notices, and other published administrative guidance."(Internal Revenue Service)

Audio and Text: Obama Budget Pushes Paid Leave Programs
Excerpt:"The Obama administration's budget includes $50 million to help states with start-up costs for family leave programs -- not for costs associated with the leave days. It would pay for things like computers and administration, which Washington state estimates would cost $10 million the first year."(Morning Edition via National Public Radio)

Many Employers Not Aware of Community Living Assistance Services and Support Act
Excerpt:"Employers recently breathed a sigh of relief when lawmakers decided not to make the Community Living Assistance Services and Support Act mandatory, but while that decision was clearly good news for companies, experts say HR leaders would still be well-served to brush up on the CLASS Act's various provisions . . . ."(Human Resource Executive Online)

[Guidance Overview] New Law Gives Women the Right to Pump Milk in the Workplace
Excerpt:"Groups representing employers . . . say the breast-feeding provision lacks clarity."(Washington Business Journal)

[Guidance Overview] CLASS Program to Offer Benefits Under Health Care Reform Law
Excerpt:"Employers can choose whether to participate in the program, which will provide cash benefits and other services to working adults with functional limitations expected to last at least 90 days."(Mercer)

Employers Say Benefit Costs Trump Employee Retention
Excerpt:"For the first time since 2006, controlling benefit costs edge out employee retention as the top concern facing employers . . . .'"(Employee Benefit Adviser; free registration required)

Incentive Plans Are of Continued Importance, According to Survey
Excerpt:"Over the past decade, incentive plan designs have become more consistent within organizations. As more companies offer a single annual plan for both executives and other employees: More companies are altering their eligibility requirements. Executive-only incentive plans are now in the minority. The most common eligibility factor is salary grade or band -- not position title, reporting relationship or officer status as in the past."(Towers Watson)

Health Reform Law Increases Adoption Assistance Exclusion and Credit
Excerpt:"Employers that offer adoption assistance and employees who take advantage of it -- or that claim the adoption tax credit -- need to make adjustments that reflect the provisions of the Patient Protection and Affordable Care Act (the PPACA) that increase the employer-provided adoption assistance exclusion and the adoption tax credit. The PPACA, enacted March 23, 2010, increased the tax credit under Code Section 23 to $13,170 for all adoptions, including adoptions of children with special needs. It also increased the exclusion for employer-provided adoption assistance under Section 137 to $13,170 for all adoptions, including adoptions of children with special needs."(Thompson Publishing Group Inc.)

House Oversight and Government Reform Committee Approves Measures to Expand Telework and to Allow Federal Employees to Invest Value of Unused Leave in Retirement Accounts
Excerpt:"The panel passed the 2009 Telework Improvements Act (H.R. 1722) by a voice vote, after debating three amendments aimed at strengthening oversight. The measure would codify a governmentwide telework policy Office of Personnel Management Director John Berry announced last year, guaranteeing eligible federal employees the right to work off-site for at least 20 percent of every two-week period. It also would require every agency to designate a telework managing officer and it would provide training on the alternative work arrangement for employees and supervisors."(GovernmentExecutive.com)

House Slated to Vote on Legislation Providing That Employer-Provided Cell Phones Not Be Treated by IRS As a Taxable Fringe Benefit to Employees
Excerpt:"Dow Jones reported that the Internal Revenue Service (IRS) interprets current law to require the inclusion of the value of a work cell phone in employee pay, unless detailed records are kept establishing that the phone is not used for personal calls."(PLANSPONSOR.com)

Even With a Recovery, Job Perks May Not Return
Excerpt:"Workers have seen everything from 401(k) contributions to educational reimbursements cut by their employers during the recession. While some companies are slowly restoring some benefits, experts say workers shouldn't expect a return to pre-2007 levels any time soon.'Those days are gone,'says Tim Prichard, head of BridgeStreet Consulting, a benefits administration consulting firm.'Benefits across the board are no longer sacred cows.'"(The Wall Street Journal)

Notes on the Report'Work-Life Balance and the Economics of Workplace Flexibility'
Excerpt:"In 1968, a quarter of all American children lived in households in which all parents were working full time. Four decades later, the report notes, that portion had doubled to nearly one-half of all children."(The New York Times; free registration required)

Work-Life Balance and the Economics of Workplace Flexibility (PDF)
35 pages. Excerpt:"This report presents an economic perspective on flexible workplace policies and practices. The first section reports some of the changes in the U.S. workforce that have increased the need for flexibility in the workplace. . . . The second section examines the current state of flexible work arrangements and reports that many employers have adapted to the changing realities of American workers. . . . The report concludes with a discussion of the economic benefits of workplace flexibility arrangements."(Executive Office of the President, Council of Economic Advisers)

Adoption Credit Increased, Made Refundable by Health Care Act
Excerpt:"The Patient Protection and Affordable Care Act (PL 111-148) temporarily increased the adoption expense credit and fringe benefit exclusion limit for adoption assistance programs and made the credit refundable. The changes are effective for tax years beginning after Dec. 31, 2009."(American Institute of Certified Public Accountants)

Survey Finds More Employers Report Using Paid Time Off Banks Rather than Traditional Individual Policies for Vacation, Sick Leave, and Personal Leave
Excerpt:"Fifty-four percent of employers report that their organization offers a comprehensive PTO plan, compared to 43% who said the same in BLR's Survey of Employee Benefits in 2007. In the most recent survey, virtually all of the companies that said they offer a PTO plan allow both exempt and nonexempt employees to participate in the plan."(PLANSPONSOR.com)

[Guidance Overview] IRS Publishes New Terminal Charge and SIFL Rates for Noncommercial Flights on Employer-Owned Aircraft
Excerpt:"For flights taken during the period from January 1, 2010, through June 30, 2010, the terminal charge is $40.28, and the SIFL rates are: $.2204 per mile for the first 500 miles; $.1680 per mile 501 through 1,500 miles; and $.1615 per mile over 1,500 miles."(Wolters Kluwer CCH Tax News Headlines)

[Guidance Overview] IRS Update of Amount of Excludable or Deductible Foreign Housing Expenses for 2009 and 2010
Excerpt:"The [IRS] has published adjusted limitations on the housing expense tables for purposes of Code Sec. 911(c)(2)(A). The guidance provides adjusted limitations on housing expenses for 2010, includes a table that identifies locations within countries with high housing costs relative to housing costs in the U.S., and provides an adjusted limitation on housing expenses for qualified individuals with housing expenses in one or more high-cost locations in 2008. Outside the high-cost areas, the annual limitation is $27,450."(CCH INCORPORATED)

Paid Sick Leave in the United States (PDF)
4 pages. Excerpt:"This issue of Program Perspectives takes a closer look at paid sick leave benefits, including both the percentage of employees with access to paid sick leave benefits and employer costs for sick leave.Short-term disability plans are also discussed."(U.S. Bureau of Labor Statistics)

[Official Guidance] Text of IRS Notice 2010-27: Adjusted Limits for Section 911 Foreign Earned Income and Housing Exclusions (PDF)
Notice 2010-27 provides adjusted limitations on housing expenses for tax year 2010 for purposes of the foreign earned income and housing exclusion, section 911 of the Internal Revenue Code. These increases reflect areas with higher housing costs, relative to housing costs in the United States. Generally, this guidance is issued annually. (Internal Revenue Service)

Work-Life Balance Series on NPR This Week
Excerpt:"NPR is running a series this week on work-life balance. Today's reports [at http://www.npr.org/templates/story/story.php?storyId=124698891] focus on flexible work schedules and low-wage workers. Joan Williams, Director of the Center for WorkLife Law at U.C.-Hastings, is featured prominently."(Workplace Prof Blog)

Lawmakers to Unveil Leave Investment Bill for Thrift Savings Plan
Excerpt:"Lawmakers plan to introduce a bipartisan bill this week that would allow federal employees to invest the cash value of their unused annual leave in their Thrift Savings Plan accounts, retirement program staff said on Monday."(GovernmentExecutive.com)

[Guidance Overview] IRS's Updated Version of Publication 463 on Travel, Entertainment, Gift, and Car Expenses
Excerpt:"EBIA Comment: Publication 463 covers a lot of ground, but it is especially detailed and useful in its handling of the deductions for business use of an employee's vehicle. Those deductions will not apply if the employee's expenses are reimbursed under an accountable plan, in which case the employer reimbursements are excluded from income and the vehicle expenses are not deductible by the employee."(Employee Benefits Institute of America)