The IRS and Social Security Administration have already announced key dollar amounts necessary for 2022 benefit plan administration. In addition, the IRS has issued the optional standard mileage rates.
Now is a great time to get to know these new numbers and consider what benefits deserve a place in your 2022 plan.
Inflation Adjustments for Annual Benefit Plan Amounts
You’ll notice some of the key contribution limits are significantly higher than in 2021. View complete list of key 2022 limits and dollar amounts needed to administer FASs, HSAs and HDHPs as well as health plans not grandfathered under the Affordable Care Act.
Remember: The 2022 limit becomes relevant in 2023. Consider your employees’ 2021 compensation when identifying highly compensated employees (HCEs) for 2022.
Standard Mileage Rates
Used to calculate deductible costs of operating a vehicle for business, charity, medical or moving purposes.
The standard rates starting January 1 are as follows:
Business use – 58.5 cents/mile (+2.5 cents from 2021)
Medical or moving purposes for qualified active-duty Armed Forces members – 18 cents/mile (+2 cents from 2021)
Service of charitable organizations – 14 cents/mile (set by statute and remains unchanged)
Taxpayers can calculate the actual costs of using their vehicle(s) instead of using the standards mileage rates. However, standard rates must be used in the first year the vehicle is available for business use. Leased vehicles must use the standard rate method for the duration of the lease period if taxpayer chooses standard rate.
Health Savings Accounts
Looking to help your employees lower their health insurance expenses? HSAs are a great strategy to consider. They’re always paired with a high-deductible health plan and has a lower premium. If HSAs are already part of your employee benefits package, help them maximize their HSA with these tips & tricks.
Let’s Talk
If you’re looking to add any of these benefits to your current benefit package, there’s no time like now to get in touch!
If you’re interested in working with us to put a benefit package together, please fill out the form below to help us get to know you and your company’s needs better.
