New Tax Law Benefit Changes

Posted by Jeff Pelliccio on Jan 31, 2018 9:00:00 AM

In Job Trends

Employees are waiting to read the specifics of the new tax bill. President Donald Trump has signed expansive tax legislation into effect and employees should take proactive steps to anticipate these specific changes. Specifically, there could be changes to their benefits and how they are assessed for tax purposes. Employers are also taking note and could make changes to staffing. Each new tax bill will typically come with a wave of important changes overall, and even the media is debating the merits of the new tax law. Here are the implications for employees:

Receive More Bonuses

The tax law will incentivize companies who offer bonuses to their employees. These companies are hiring more people and extending bonuses for various reasons. Most employees expect to receive tax bonuses at the end of the year and that may relate to their performance or could be a flat bonus offered to the team. The new tax law has provisions that reward companies for these bonuses and could lead to bigger bonuses from major corporations out there. Wait to see a new lineup of people searching for jobs with bonuses. It's a typical feature of the economy after a significant tax law is signed. Business insiders expect some major changes to the way that these bonuses get distributed among workers.

Increased Family Leave Time

There are now laws on the books that encourage businesses to offer family leave. That leave time may hinge on a few important factors. Law allows for up to 12 weeks of leave to be extended in time. They can take time for their infant or other reasons during the year. Corporations will be known for the generosity when it comes to extending leave time.

New 401(k) Loans

Many are already familiar with the opportunity to start their own 401(k) portfolio, but loans can also be drawn out of the same concept. Some people may find themselves in need of money that they could use and their 401(k) is a popular asset that has to be considered. These loans are convenient and accessible in a number of important ways. Employees can draw out loans and pay them back in due time. Loans are extended within a 60 day period that is specified. Employees will need to pay back that amount in full and with interest. They have to properly care for their 401(k) or risk losing those funds before retirement age. Employers may offer some training when it comes to proper 401(k) management in full. Note that the deadline has been extended until the tax due date (April 15) to pay down those loans.

Employee Moving Expenses

Relocation is a fairly typical aspect of the modern work experience and employees may need some financial help when it comes to those moving expenses. They can expect that the tax bill will help that happen. Employee moving expenses are monitored and awarded based on need. File a request, and an employer may come through when people need them the most. That will make sure that relocation goes forward without any delay. Trust the company to do what is right when it comes to those relocation expenses in full.

Changes To Employee Awards

Take note of some tax law alterations to the way that awards are taxed. Awards and gift giving are fairly common in business culture, and it is a great way to show appreciation for the effort being made overall. Employee awards are extended and given to those who earn them over time but note that gift cards and related monetary gifts can be taxed in the new law. Tangible items such as mugs and shirts cannot be taxed, so think carefully about the items that employees accrue over the year. That might affect how they file their taxes at the end of the year. Staying on top of recent events can prevent mistakes made while filing a return for a given year.

Review Commuter Benefits

People are finding new ways to commute to work each day. These employees are eager to receive benefits from their office for that commute. Riding a bicycle could net a commuter a nice benefit deal from their employer, but be ready to pay taxes on that benefit at the end of the year. It may constitute a monetary reward and will be taxed accordingly. Commuter benefits are popular and should be featured in many major companies. Keep track of the money that is reaped by that commuting effort.

The new tax law is heavily anticipated and will introduce many new changes. It does offer incentives to corporations that make essential changes in payments. Expect reduced costs of getting to work and contributing to these projects. The tax law is something noteworthy that could influence decisions made by employers. Tax law changes are a surefire way to see those benefits enacted by law.

Tax Law Could Benefit You At Your Next Job

Benefits are a big part of job satisfaction. If you don't like the direction your employee is taking your benefits, you can always search our list of open jobs for one that better fits your needs from an employer. ICS has plenty of companies that are looking for top qualified candidates like you. All you have to do is apply. Move to a job where you're valued for your full potential. 

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