#employee-benefits
Employee Benefits
Discover employee benefit options to attract talent and reduce turnover in small businesses
Split-Dollar Life Insurance, Explained: How Business Owners and Key Employees Share the Cost of a Policy
Split-dollar life insurance is an agreement — not a policy type — for an employer and a key employee to divide the premiums, cash value, and death benefit of one permanent policy. This guide compares the two structures (collateral assignment vs. endorsement), explains how the IRS taxes each under the economic benefit and loan regimes, why premiums are never deductible, and how to book the arrangement correctly from day one.
California's SB 642 Just Redefined "Wages": What the 2026 Pay Equity Law Means for Your Payroll Records
Effective January 1, 2026, California's SB 642 expands the Equal Pay Act's definition of wages to cover bonuses, stock options, allowances, hotel accommodations, and travel reimbursements — and lets each paycheck restart the three-year claim clock, with back pay recoverable up to six years. Here is what changed and a practical compliance checklist for small employers.
The SECURE 2.0 Startup 401(k) Tax Credit: How to Claim Up to $15,000 for Launching a Retirement Plan
SECURE 2.0 gives small employers three stackable federal tax credits for starting a retirement plan — up to $5,000 per year for three years in startup costs, up to $1,000 per eligible employee in contribution credits, and a flat $500 per year for auto-enrollment — all claimed on IRS Form 8881. Here's who qualifies, how the five-year phasedown works, and how the credits compare against state auto-IRA mandates in 2026.
California AB 406: Paid Sick Leave Now Covers Jury Duty and Crime-Victim Court Dates — and the Civil Rights Department Is Enforcing It
California's AB 406 lets employees use accrued paid sick leave for jury duty, subpoenaed witness testimony, and crime-victim judicial proceedings — expanded January 1, 2026 to cover plea hearings, sentencing, and release decisions — while enforcement moves from the Labor Commissioner to the Civil Rights Department. Here's what every California employer, regardless of size, must update.
Massachusetts Secure Choice: What the Mandatory Retirement Savings Bill Means for Small Businesses
Massachusetts's House passed the Secure Choice Savings Program 148-2 on July 8, 2026, mandating auto-enrollment Roth IRAs for employers with 25+ workers — 6% default contributions, $250-per-employee penalties, and a qualifying-plan exemption small businesses can use to opt out entirely.
New Hampshire's HB 1433 Child Care Tax Credit: What Employers Can Claim Against BPT and BET
New Hampshire's HB 1433, signed July 9, 2026, creates a Child Day Care Creation Tax Credit worth 50% of qualifying costs against the Business Profits Tax and Business Enterprise Tax, capped at $5 million statewide with a four-year carryforward. Here is who qualifies under the 12-slot rule, how it differs from HB 1634, and what to track before 2028 filings.
SECURE 2.0's Paper Benefit Statement Rule: What the DOL's Temporary Relief Means for 401(k) Plan Sponsors
SECURE 2.0 requires 401(k) and other defined contribution plans to mail at least one paper benefit statement per year starting with plan years after December 31, 2025. With Q1 2026 statements due around May 15 and the DOL's implementing rule still a proposal, Field Assistance Bulletin 2026-02 pauses enforcement for plan sponsors who comply in good faith — here's what small businesses must still do.
Safe Harbor 401(k) Plans in 2026: How Small Businesses Skip Nondiscrimination Testing
A safe harbor 401(k) automatically passes IRS ADP/ACP nondiscrimination testing in exchange for a fixed employer contribution — a 3% nonelective or a match of up to 4%. Here's how the three formulas compare in cost, the December 1 retroactive adoption deadline, and the 2026 limits ($24,500 deferral, $72,000 total additions, mandatory Roth catch-ups for high earners).
Do Quarterly Bonuses Require Overtime Recalculation? DOL Opinion Letter FLSA2026-6 Explains the Exception
DOL Opinion Letter FLSA2026-6 (May 28, 2026) confirms that a quarterly bonus paid as a fixed percentage of total earnings — straight-time plus overtime — satisfies FLSA overtime requirements under 29 CFR § 778.210 with no workweek-by-workweek recalculation. Here are the four conditions the exception depends on and a compliance checklist for small businesses.
DOL Opinion Letter FLSA2026-2: When a "Discretionary" Bonus Isn't — and What It Does to Overtime Pay
DOL Opinion Letter FLSA2026-2 (January 5, 2026) holds that a formula-driven safety and attendance bonus of up to $9.50/hour is nondiscretionary and must be included in the FLSA regular rate — turning a $12/hour base into a $21.50 regular rate and adding $107.50 of overtime pay in DOL's own 50-hour example. Here is the three-part test, which common bonus types fail it, and how to fix the payroll math.
The DOL's Fiduciary Rule Just Died Again: What Small Employers Running a 401(k) Need to Know Now
Texas federal courts vacated the DOL's Retirement Security Rule in March 2026, reverting fiduciary status for retirement advice to the 1975 five-part test — the second such rule struck down since 2018. Here's what 401(k) plan sponsors should check now: advisor fiduciary status in writing, compensation disclosures, and a documentation checklist, plus what the DOL's new alternative-assets safe harbor proposal means for small plans.
The Free Lunch Is Officially Over: What OBBBA's 0% Meal Deduction Means for Your Business in 2026
Starting January 1, 2026, OBBBA's new IRC §274(o) cuts the employer deduction for on-site cafeterias, office snacks, and "convenience of the employer" meals from 50% (or 100%) to zero, while client meals, travel meals, and restaurant employee meals keep their old treatment. Here's the math on what the change costs and how small businesses should restructure their books.