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

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

Healthcare Provider Update: Healthcare Provider for Murphy USA: Murphy USA's healthcare provider network includes a variety of options, primarily focused on major insurance companies that offer group health insurance plans for its employees. The specific providers can vary over time and by location, but typically include carriers such as UnitedHealthcare, Cigna, and Blue Cross Blue Shield, among others. Potential Healthcare Cost Increases in 2026: As Murphy USA employees navigate the rising tide of healthcare costs, the looming increases for 2026 present significant challenges. With ACA marketplace premiums expected to surge by an average of 20%, many employees may face substantially higher out-of-pocket expenses. These increases are driven by multiple factors, including escalating medical costs, the potential loss of enhanced federal premium subsidies, and changing employer benefit structures aimed at managing expenses. Consequently, employees at Murphy USA are advised to closely review their health benefit options and prepare for a potential increase in their personal healthcare expenditures next year. Click here to learn more

Here are some things for Murphy USA 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
Murphy USA 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 Murphy USA employee, doing so may enable you to postpone payment of tax on the income until next year.

2. Accelerate deductions
Murphy USA 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 Murphy USA 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 Murphy USA 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 Murphy USA employees to request a Form W-4 change and for their employers from Murphy USA 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 Murphy USA 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 Murphy USA-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, Murphy USA 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 Murphy USA-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 Murphy USA employee age 72 or older, you generally must take required minimum distributions (RMDs) from traditional IRAs and Murphy USA-sponsored retirement plans (special rules apply if you're still working and participating in Murphy USA'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
Murphy USA 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 Murphy USA 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 purpose of the 401(k) plan at Murphy USA?

The 401(k) plan at Murphy USA is designed to help employees save for retirement by allowing them to contribute a portion of their salary on a pre-tax basis.

How can employees at Murphy USA enroll in the 401(k) plan?

Employees at Murphy USA can enroll in the 401(k) plan through the company’s benefits portal during the open enrollment period or upon their hire date.

Does Murphy USA match employee contributions to the 401(k) plan?

Yes, Murphy USA offers a matching contribution to the 401(k) plan, which helps employees maximize their retirement savings.

What is the maximum contribution limit for the 401(k) plan at Murphy USA?

The maximum contribution limit for the 401(k) plan at Murphy USA follows the IRS guidelines, which are updated annually. Employees should check the current limits for the year.

Can employees at Murphy USA take loans against their 401(k) savings?

Yes, Murphy USA allows employees to take loans against their 401(k) savings, subject to specific terms and conditions outlined in the plan.

What investment options are available in Murphy USA's 401(k) plan?

Murphy USA's 401(k) 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 employees at Murphy USA change their 401(k) contributions?

Employees at Murphy USA can change their 401(k) contributions at any time, subject to the plan's rules and guidelines.

Is there a vesting schedule for the employer match in Murphy USA's 401(k) plan?

Yes, Murphy USA has a vesting schedule for the employer match, which determines how much of the matched contributions employees are entitled to based on their years of service.

Can employees at Murphy USA access their 401(k) funds before retirement?

Employees at Murphy USA may access their 401(k) funds before retirement under certain circumstances, such as hardship withdrawals or after reaching a specific age.

What happens to the 401(k) plan if an employee leaves Murphy USA?

If an employee leaves Murphy USA, they have several options regarding their 401(k) plan, including rolling it over to another qualified plan, cashing it out, or leaving it with Murphy USA.

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 the Pension Plan: Identify the official name of Murphy USA’s pension plan. Years of Service and Age Qualification: Determine the requirements for employees to qualify for the pension plan, including years of service and age. Pension Formula: Review how the pension amount is calculated. Acronyms and Terminology: Collect relevant acronyms and terms related to Murphy USA’s pension plan. Name of the 401(k) Plan: Find out the official name of Murphy USA’s 401(k) plan. Qualification for 401(k) Plan: Identify who qualifies to participate in the 401(k) plan. Acronyms and Terminology: Collect relevant acronyms and terms related to Murphy USA’s 401(k) plan.

Restructuring and Layoffs: In 2023, Murphy USA announced a restructuring plan aimed at improving operational efficiency. This included some layoffs, particularly in non-core business units. The company cited the need to streamline operations and enhance profitability amidst a challenging economic climate. This restructuring is significant as it reflects broader trends in the industry where companies are adapting to economic uncertainties and competitive pressures. It is crucial to follow these changes due to their potential impact on employee benefits and organizational stability.

Murphy USA offered stock options and RSUs primarily to senior executives and certain key employees. These incentives were designed to align interests with shareholders and reward long-term performance. For specific details on stock options and RSUs, refer to Murphy USA’s 2022 Proxy Statement, Page 25.

Health Benefits Overview: Murphy USA offers a range of health benefits including medical, dental, and vision insurance. The plans are typically administered through major insurance carriers, providing various coverage levels. Healthcare Terms: Common terms include PPO (Preferred Provider Organization), HSA (Health Savings Account), and FSA (Flexible Spending Account).