New Update: Healthcare Costs Increasing by Over 60% in Some States. Will you be impacted?

Essential Year-End Tax Strategies for IDEXX Laboratories Employees: What You Need to Know Before 2023

Healthcare Provider Update: Healthcare Provider for IDEXX Laboratories: IDEXX Laboratories primarily collaborates with a network of healthcare providers and laboratories globally. This includes veterinarians, animal hospitals, and clinical laboratories that utilize IDEXX's diagnostic products and services. The company focuses on providing diagnostic testing and data management solutions that enable better healthcare decisions in animal health and veterinary diagnostics. Potential Healthcare Cost Increases in 2026: In 2026, healthcare costs are expected to rise sharply, driven by significant increases in health insurance premiums for Affordable Care Act (ACA) marketplace plans. Several states may see premium hikes as high as 66%, with projections indicating that the expiration of enhanced federal premium subsidies could lead to out-of-pocket costs soaring by over 75% for the majority of enrollees. The compounded effect of rising medical expenses, alongside the aggressive rate increases from major insurers, creates a challenging landscape for individuals and families seeking affordable healthcare coverage. This trend emphasizes the need for awareness and proactive strategies to mitigate financial impact in the coming years. Click here to learn more

Here are some things for IDEXX Laboratories employees and retirees to consider as they weigh potential tax moves between now and the end of the year.

1. Defer income to next year
IDEXX Laboratories employees must consider opportunities to defer income to 2023, particularly if you think you may be in a lower tax bracket then. For example, you may be able to defer a year-end bonus or delay the collection of business debts, rent, and payments for services. As a IDEXX Laboratories employee, doing so may enable you to postpone payment of tax on the income until next year.

2. Accelerate deductions
IDEXX Laboratories employees and retirees should also look for opportunities to accelerate deductions into the current tax year. If you itemize deductions, making payments for deductible expenses such as medical expenses, qualifying interest, and state taxes before the end of the year (instead of paying them in early 2023) could make a difference on your 2022 return.

3. Make deductible charitable contributions
As a IDEXX Laboratories employee, if you itemize deductions on your federal income tax return, you can generally deduct charitable contributions, but the deduction is limited to 50% (currently increased to 60% for cash contributions to public charities), 30%, or 20% of your adjusted gross income (AGI), depending on the type of property you give and the type of organization to which you contribute. (Excess amounts can be carried over for up to five years.)

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4. Bump up withholding to cover a tax shortfall
As a IDEXX Laboratories employee, if it looks as though you will owe federal income tax for the year, consider increasing your withholding on Form W-4 for the remainder of the year to cover the shortfall. Time may be limited for IDEXX Laboratories employees to request a Form W-4 change and for their employers from IDEXX Laboratories to implement it in time for 2022. The biggest advantage in doing so is that withholding is considered as having been paid evenly throughout the year instead of when the dollars are actually taken from your paycheck. This strategy can be implemented by IDEXX Laboratories employees to make up for low or missing quarterly estimated tax payments.

5. Save more for retirement
Deductible contributions to a traditional IRA and pre-tax contributions to a IDEXX Laboratories-sponsored retirement plan such as a 401(k) can reduce your 2022 taxable income. As a fortune 500 employee, if you haven't already contributed up to the maximum amount allowed, consider doing so. For 2022, IDEXX Laboratories employees can contribute up to $20,500 to a 401(k) plan ($27,000 if you're age 50 or older) and up to $6,000 to traditional and Roth IRAs combined ($7,000 if you're age 50 or older).* The window to make 2022 contributions to a IDEXX Laboratories-sponsored plan generally closes at the end of the year, while you have until April 18, 2023, to make 2022 IRA contributions.

*Roth contributions are not deductible, but Roth-qualified distributions are not taxable.

6. Take the required minimum distributions
If you are a IDEXX Laboratories employee age 72 or older, you generally must take required minimum distributions (RMDs) from traditional IRAs and IDEXX Laboratories-sponsored retirement plans (special rules apply if you're still working and participating in IDEXX Laboratories's retirement plan). You have to make the withdrawals by the date required — the end of the year for most individuals. The penalty for failing to do so is substantial: 50% of the amount that wasn't distributed on time. As a fortune 500 employee, making these distributions in a timely manner is essential as to avoid the late penalty.

7. Weigh year-end investment moves
IDEXX Laboratories employees and retirees shouldn't let tax considerations drive investment decisions. However, it's worth considering the tax implications of any year-end investment moves that you make. For example, if you have realized net capital gains from selling securities at a profit, you might avoid being taxed on some or all of those gains by selling losing positions. As a IDEXX Laboratories employee, any losses over and above the number of your gains can be used to offset up to $3,000 of ordinary income ($1,500 if your filing status is married filing separately) or carried forward to reduce your taxes in future years.

Tags: Financial Planning , Tax , Retirement , 2022

What is the 401(k) plan offered by IDEXX Laboratories?

The 401(k) plan at IDEXX Laboratories is a retirement savings plan that allows employees to save a portion of their salary on a tax-deferred basis.

Does IDEXX Laboratories offer a company match for the 401(k) contributions?

Yes, IDEXX Laboratories offers a company match for employee contributions to the 401(k) plan, which helps employees grow their retirement savings.

How can employees enroll in the 401(k) plan at IDEXX Laboratories?

Employees can enroll in the 401(k) plan at IDEXX Laboratories through the company’s HR portal or by contacting the HR department for assistance.

What is the minimum age requirement to participate in the 401(k) plan at IDEXX Laboratories?

The minimum age requirement to participate in the 401(k) plan at IDEXX Laboratories is 21 years old.

Can employees of IDEXX Laboratories change their contribution percentage to the 401(k) plan?

Yes, employees at IDEXX Laboratories can change their contribution percentage to the 401(k) plan at any time, subject to the plan's guidelines.

What types of investment options are available in the IDEXX Laboratories 401(k) plan?

The IDEXX Laboratories 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.

Is there a vesting schedule for the company match in the IDEXX Laboratories 401(k) plan?

Yes, IDEXX Laboratories has a vesting schedule for the company match, which means employees must work for a certain period to fully own the matched contributions.

How often can employees at IDEXX Laboratories review their 401(k) account statements?

Employees at IDEXX Laboratories can review their 401(k) account statements quarterly, and they can also access their accounts online at any time.

What happens to the 401(k) plan if an employee leaves IDEXX Laboratories?

If an employee leaves IDEXX Laboratories, they can choose to roll over their 401(k) balance to another retirement account, cash out, or leave the funds in the IDEXX plan if eligible.

Are there any fees associated with the 401(k) plan at IDEXX Laboratories?

Yes, there may be administrative fees and investment-related fees associated with the 401(k) plan at IDEXX Laboratories, which are disclosed 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.

Name of Pension Plan: IDEXX Laboratories Pension Plan Pension Formula: The pension formula is typically a defined benefit plan formula, which might include years of service and final average salary components. Specific details are generally outlined in the plan document or summary plan description (SPD). Years of Service and Age Qualification: Employees generally need a minimum of 5 years of service to qualify for pension benefits. The normal retirement age is 65, though there might be provisions for early retirement .401(k) Plan:Name of 401(k) Plan: IDEXX Laboratories 401(k) Plan Qualifications: Employees are eligible to participate in the 401(k) plan upon hire. The plan typically includes features such as employer matching contributions, which might require a certain period of service or contribution.

Restructuring and Layoffs: In early 2024, IDEXX Laboratories announced a restructuring plan to streamline operations, which included a reduction of approximately 5% of its workforce. This decision was driven by the need to adapt to changing market conditions and to increase operational efficiency.

IDEXX Laboratories provided stock options and RSUs to employees as part of their compensation package. Employees eligible for these benefits included key executives, senior management, and other employees based on performance and role. Stock options typically vest over a period, encouraging long-term commitment to the company.

Benefits Overview: IDEXX provides a comprehensive benefits package that includes medical, dental, and vision insurance. They offer several plan options, including high-deductible health plans (HDHPs) and traditional PPO plans. Employees also have access to health savings accounts (HSAs) and flexible spending accounts (FSAs). Wellness Programs: IDEXX emphasizes wellness with programs such as on-site fitness centers, mental health resources, and wellness coaching.