Federal Alerts

Transportation expenses, such as automobile mileage, that qualify as tax deductible medical expenses under Internal Revenue Code Section 213 generally can be paid or reimbursed on a tax-free basis by a health flexible spending arrangement, health reimbursement arrangement, or health savings account if the expense is “primarily for, and essential to, medical care.”

On Dec. 29, 2022, the Internal Revenue Service issued via Notice 2023-03 the 2023 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, moving, and charitable purposes.

On Jan. 13, 2023, the Department of Labor (DOL) issued a final rule via the Federal Register that revises civil penalties for many violations of federal labor laws, including certain violations of the Fair Labor Standards Act (FLSA) and the Family Medical Leave Act (FMLA). The Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 directs federal agencies to adjust civil penalties for inflation each year.

President Joe Biden has signed legislation that expands the protections for employees who are pregnant or nursing a child. Some of the changes took effect immediately, whereas others are effective in June.

Effective Dec. 12, 2022, the U.S. Citizenship and Immigration Services (USCIS) has extended the validity of Permanent Resident Cards (Green Cards) for lawful permanent residents who have properly filed a Form N-400 Application for Naturalization.

The Internal Revenue Service (IRS) released Notice 2022-59, which establishes the applicable dollar amount for policy and plan years ending on or after October 1, 2022 and before October 1, 2023 in relation to the Patient-Centered Outcomes Research Institute (PCORI) fee established under the Affordable Care Act (ACA).

The U.S. Equal Employment Opportunity Commission (EEOC) has released an updated poster that federal nondiscrimination laws require employers to display. Covered employers must post the new version as soon as possible.

The Department of Homeland Security (DHS) has announced that employers should continue using the current Form I-9 (Employment Eligibility Verification) until further notice. Separately, the DHS announced that employers will be allowed to inspect Form I-9 documents remotely in certain situations related to COVID-19 until July 31, 2023. Prior to the announcement, this temporary policy was set to expire on Oct. 31, 2022.

On Oct. 13, 2022, the Social Security Administration (SSA) announced the 2023 wage base. The annual wage base limit is the maximum amount of employee wages that are subject to the social security tax for the calendar year.