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The Reason Cintas Employees Need to be Aware of Common Tax Scams

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Healthcare Provider Update: Healthcare Provider for Cintas: Cintas Corporation typically collaborates with various health insurance providers to offer employee benefits, but a specific single healthcare provider isn't disclosed in their publicly available information. Typically, large employers like Cintas may operate with several health insurance options, allowing employees to choose their preferred plans from major insurers. Potential Healthcare Cost Increases in 2026: As we approach 2026, Cintas may face substantial increases in healthcare costs, reflecting broader trends projected across the industry. Factors such as the impending expiration of enhanced federal premium subsidies and escalating medical costs could push premiums sharply higher, potentially affecting employee coverage and benefits. With many insurers reporting significant rate hikes-some exceeding 60%-companies like Cintas may need to strategically manage these financial pressures to maintain competitive employee offerings while safeguarding their bottom line. By proactively addressing these challenges, Cintas can better prepare for the potential financial implications of rising healthcare expenses in the upcoming year. Click here to learn more

As for the Cintas employees and retirees, one must always be careful during tax time and throughout the year as well when it comes to tax scams,' says Tyson Mavar of The Retirement Group at Wealth Enhancement Group. 'This article provides a general overview of the most common types of scams and how to avoid them with the help of the IRS's recommendations.'

'The increase in tax scams during peak seasons calls for more caution among the Cintas employees and retirees,' says Wesley Boudreaux, a representative of The Retirement Group, a division of Wealth Enhancement Group. 'Knowing your tax responsibilities and using the IRS's recommended procedures are important steps in the protection of one's personal and financial information.'

In this article, we will discuss:

1. Types of Tax Scams: Different schemes including phishing, phone scams, and tax preparer fraud that target personal and financial information.

2. Preventive Measures: Tips to prevent scams such as checking the source and using protective measures such as the IRS Identity Protection PIN.

3. Consequences and Reporting: Discusses the effects of these scams and how to report them to the proper channels to minimize the effects.

These scams, as reported by the Internal Revenue Service (IRS), are more likely to occur during tax season and other times of economic uncertainty. As we are now in the middle of tax season, the Internal Revenue Service is sharing important information with taxpayers and urging them to be on the lookout for scam artists who may attempt to steal their identities.

According to the Federal Trade Commission (FTC), financial scams are most common among older people, and con artists often pose as trustworthy entities such as government agencies, charities, or healthcare providers. The FTC has reported that more than $1 billion was lost to fraud by consumers 60 years of age and over, with the median loss being $600. It is crucial for Cintas employees and retirees to know the following common tax scams that are likely to be encountered in order to avoid becoming a victim of them.

Phishing and text message scams

The first con that Cintas employees and retirees should be on the lookout for is phishing. Phishing and text message scams are unsolicited emails or text messages that appear to be from official IRS websites in an attempt to get you to share personal or financial info. When con artists get their hands on this information, they immediately use it to steal people's identities or their money. The Internal Revenue Service does not contact taxpayers through email, text messages, or any other form of social media communication requesting personal or financial information.

The Internal Revenue Service (IRS) most typically initiates communication with taxpayers through the regular mail delivered by the United States Postal Service. This information is very important and we would like all the Cintas workers and retired employees to be aware of it.

Phone scams

This means that Cintas employees and retirees need to be wary of fraudulent phone calls. The scammers will usually tell their victims that they owe the Internal Revenue Service (IRS) money, or that they are due a large refund from the IRS. The calls can show up on your Caller ID as coming from the Internal Revenue Service (IRS), they may be accompanied by phony emails that appear to be sent from the IRS, or they may be followed by calls from people claiming to be from the police.

These cons will often target more vulnerable populations, such as immigrants and the elderly, and will often use scare tactics like threatening to arrest you, revoke your license, or deport you.

Tax-related identity theft

Tax-related identity theft occurs when someone uses your Social Security number to file a fraudulent tax return and claim a refund. It is possible that you will not even notice that your identity has been stolen until you attempt to file your taxes and discover that someone else has already used your Social Security number to file a return. You may also receive a letter from the Internal Revenue Service informing you that it has detected a suspicious return that uses your Social Security number. The Internal Revenue Service (IRS) has recently put into place a program called the Identity Protection PIN Opt-In Program to help combat identity theft related to taxes. The Identity Protection PIN is a six-digit code that only you and the IRS know when you file your tax return.

This code assists the IRS in verifying your identity and helps reduce the chances of your return being accepted by a fraudulent filing. This preventative measure is something that Cintas employees and retirees can take in order to protect themselves against the possibility of their identity being stolen.

Tax preparer fraud

There are times when con artists will pretend to be a legitimate tax preparer in order to commit identity theft or fraud with your taxes and your refund. Cintas employees and retirees should be cautious of any tax preparer who: Refuses to sign the tax return (also called a ghost preparer), Accepts a cash-only payment, Claims unfounded deductions or tax credits, Has the refunds deposited into his or her account, or Promises a bigger or inflated refund than what is due.

In general, a legitimate tax preparer will also: Review your income and credits and deductions and request evidence of such; sign the return as the preparer; include his or her valid preparer tax identification number; and provide you with a copy of your return. In addition, they must be permitted to prepare tax returns. It is especially important for current and former Cintas workers and retirees to be careful when choosing a tax preparer. You are still going to be responsible for everything that is on your return even if your return was done by another person.

False offer in compromise

This type of scam is usually conducted by fraudsters whose goal is to steal the victim’s personal details and claim unemployment benefits. If you receive an unexpected prepaid card for unemployment benefits, if you notice an unexpected payment from your state in your bank account, or if you receive an IRS Form 1099-G for unemployment compensation that you did not apply for you should report it to your state’s unemployment insurance office.

Unemployment insurance fraud

As has been stated earlier, these cases are usually reported by con artists. Their goal is to use your personal information to file for unemployment benefits. If you receive an unexpected prepaid card for unemployment benefits, if you observe an unexpected payment from your state in your bank account, or if you receive an IRS Form 1099-G for unemployment compensation that you did not apply for, you should report it as quickly as possible to the state unemployment insurance office in your area.

Fake charities

Charity scammers pose as real charitable organizations in order to con money from people who are not aware they are being scammed. Most of the schemes are made to look realistic and timely, for instance, natural disasters, storms, or the COVID-19 pandemic. It is important that Cintas workers and retirees should be aware of the charitable groups whose names are similar to those of more known or national companies or organizations. It is always important for any form of donation in any form whether it be cash, gift cards, or electronic funds transfer to try and verify the charity and do not send physical cash. The IRS has a tool on its website at irs.gov/charities-and-nonprofits that can help you determine if an organization is a charity.

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Protecting yourself from scams

Luckily, there are some measures that Cintas workers and retirees can take to avoid different types of scams, including those aimed at taxpayers, in order to protect their financial well-being.

  • Do not click on links in emails, text messages, or instant messaging that are unfamiliar or look suspicious and always get information directly from the government websites.

  • If you don’t know the number of the person calling you, do not answer the phone; instead, let the call go to voicemail and check who it was later.

  • Never click on the download button in an email unless you know the source of the email.

  • Make sure that your hardware and security software are up to date and use strong passwords whenever possible, and where possible, enable multi-factor authentication.

  • Never send your personal or financial information through email, text message, or telephone in its natural form.

Sources:

1. Internal Revenue Service. 'Taxpayers Should Hang Up If Tax Season Scammers Come Calling.'  IRS , 2023.  www.irs.gov/newsroom/taxpayers-should-hang-up-if-tax-season-scammers-come-calling .

2. Internal Revenue Service. 'IRS Warns of Holiday Scams, Encourages Protecting Sensitive Personal Information as 9th Annual National Tax Security Awareness Week Starts.'  IRS , 2 Dec. 2024.  www.irs.gov/newsroom/irs-warns-of-holiday-scams-encourages-protecting-sensitive-personal-information .

3. Internal Revenue Service. 'Dirty Dozen: IRS Urges Taxpayers to Not Fall Prey to Untrustworthy Tax Preparers; 'Ghost Preparers' Can Disappear with Taxpayer Cash, Information.'  IRS , 5 Apr. 2024.  www.irs.gov/newsroom/dirty-dozen-irs-urges-taxpayers-to-not-fall-prey-to-untrustworthy-tax-preparers .

4. Internal Revenue Service. 'Taxpayer Alert as Holidays, Tax Season Approach: Watch Out for Scams, Protect Financial Information; National Tax Security Awareness Week, Day 1 Highlights Important Tips.'  IRS , 29 Nov. 2021.  www.irs.gov/newsroom/taxpayer-alert-as-holidays-tax-season-approach .

5. Internal Revenue Service. 'Recognize Tax Scams and Fraud.' IRS. www.irs.gov/newsroom/recognize-tax-scams-and-fraud.

What is the purpose of the Cintas 401(k) Savings Plan?

The Cintas 401(k) Savings Plan is designed to help employees save for retirement by allowing them to contribute a portion of their salary on a tax-deferred basis.

How can Cintas employees enroll in the 401(k) Savings Plan?

Cintas employees can enroll in the 401(k) Savings Plan through the company’s benefits portal or by contacting the HR department for assistance.

What types of contributions can Cintas employees make to the 401(k) Savings Plan?

Cintas employees can make pre-tax contributions, Roth (after-tax) contributions, and may also be eligible for employer matching contributions.

Is there a company match for contributions made to the Cintas 401(k) Savings Plan?

Yes, Cintas offers a company match on employee contributions, which helps employees save more for retirement.

What is the maximum contribution limit for the Cintas 401(k) Savings Plan?

The maximum contribution limit for the Cintas 401(k) Savings Plan is determined by IRS regulations, which can change annually. Employees should check the latest guidelines for the current limit.

When can Cintas employees start contributing to the 401(k) Savings Plan?

Cintas employees can typically start contributing to the 401(k) Savings Plan after completing their eligibility period, which is outlined in the employee handbook.

Can Cintas employees change their contribution percentage at any time?

Yes, Cintas employees can change their contribution percentage at any time through the benefits portal, subject to certain restrictions.

What investment options are available in the Cintas 401(k) Savings Plan?

The Cintas 401(k) Savings Plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to suit different risk tolerances.

How often can Cintas employees review their investment choices in the 401(k) Savings Plan?

Cintas employees can review and adjust their investment choices in the 401(k) Savings Plan at any time, allowing them to align their investments with their retirement goals.

Are there any fees associated with the Cintas 401(k) Savings Plan?

Yes, there may be fees associated with managing the Cintas 401(k) Savings Plan, including administrative fees and investment fund expenses. Employees can review the fee structure in the plan documents.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
Cintas offers a competitive benefits package that includes a pension plan and a 401(k) plan for its employees. The Cintas pension plan, named the "Cintas Retirement Plan," is available to employees who meet specific years of service and age qualifications, typically requiring several years of service and reaching a certain age threshold. The pension formula used in the Cintas Retirement Plan is based on years of service and final average pay. For the 401(k) plan, Cintas offers the "Partners' Plan," which includes a company match for employee contributions. Employees must be active and have completed at least 1,000 hours of service during the fiscal year to be eligible for the company match. The 401(k) plan allows employees to contribute pre-tax dollars, and Cintas provides additional catch-up contributions for employees aged 50 and above
ERISA Settlement: In 2023, Cintas settled a class-action lawsuit for $4 million, addressing allegations of excessive 401(k) plan fees and mismanagement. The settlement includes non-monetary relief, such as conducting a record-keeping review within five years. This is important due to current economic, investment, and political environments impacting employee retirement plans. 401(k) Plan Management: The company faced criticism for high-priced, actively-managed investment options and excessive recordkeeping fees, which led to a significant financial burden on plan participants. This news highlights the necessity for vigilance in managing employee benefits amidst fluctuating economic and political conditions
2022 Stock Options and RSUs Cintas Corporation offers stock options to its employees as part of its long-term incentive plan. The stock options, denoted as CTSO, typically vest over a four-year period. Employees are granted the option to purchase shares at a predetermined price, incentivizing long-term employment and performance. Restricted Stock Units (RSUs), referred to as CTRSU, are also awarded to employees, converting into shares upon vesting. Eligibility for these stock options and RSUs is determined by employee rank and performance metrics. 2023 Stock Options and RSUs In 2023, Cintas Corporation continued to provide stock options (CTSO) and RSUs (CTRSU) with slight modifications to the vesting schedule to align better with market practices. The RSUs vest over a three-year period, with one-third of the units vesting each year. Both the stock options and RSUs are designed to retain key talent and align employees' interests with shareholders. 2024 Stock Options and RSUs For 2024, Cintas Corporation has introduced performance-based RSUs (PCTRSU) alongside the existing stock options (CTSO) and RSUs (CTRSU). These performance-based RSUs vest based on the achievement of specific financial targets over a three-year period. This addition aims to enhance motivation by linking rewards more directly to the company's financial success. Eligibility remains based on job level and individual performance.
Cintas offers a comprehensive range of health benefits to its employees, aimed at promoting overall wellness and providing financial protection. Key benefits include medical, dental, and vision coverage, as well as health savings accounts (HSAs). The company emphasizes preventive care through initiatives like biometric screenings and the LiveWell program, which offers premium discounts for healthy behaviors. Notably, Cintas provides competitive pay and retirement plans alongside these health benefits, making it a rewarding workplace. Recent updates include adjustments in premium rates and expanded eligibility for wellness programs​
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For more information you can reach the plan administrator for Cintas at 6800 Cintas Blvd Mason, OH 45040; or by calling them at (513) 459-1200.

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