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

Essential Year-End Tax Strategies for Petco Health and Wellness Employees: What You Need to Know Before 2023

Healthcare Provider Update: Healthcare Provider for Petco Health and Wellness Petco Health and Wellness collaborates with several healthcare organizations to provide comprehensive employee benefits, including access to health insurance plans through various national providers. In particular, they typically offer employee health coverage managed by prominent insurers such as UnitedHealthcare and Aetna. Potential Healthcare Cost Increases for Petco Health and Wellness in 2026 As we look ahead to 2026, Petco Health and Wellness employees may experience significant increases in healthcare costs, mirroring broader trends in the market. The expiration of enhanced federal subsidies from the Affordable Care Act (ACA) could lead to spikes in out-of-pocket premiums, with some states projecting hikes of over 60%. In this context, many employers, including Petco, are re-evaluating their benefits structure, potentially shifting more costs onto employees through increased deductibles and co-pays. Without decisive action to mitigate these rises, individuals could face substantial financial burdens while seeking necessary care in a high-cost landscape. Click here to learn more

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

2. Accelerate deductions
Petco Health and Wellness 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 Petco Health and Wellness 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 Petco Health and Wellness 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 Petco Health and Wellness employees to request a Form W-4 change and for their employers from Petco Health and Wellness 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 Petco Health and Wellness 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 Petco Health and Wellness-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, Petco Health and Wellness 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 Petco Health and Wellness-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 Petco Health and Wellness employee age 72 or older, you generally must take required minimum distributions (RMDs) from traditional IRAs and Petco Health and Wellness-sponsored retirement plans (special rules apply if you're still working and participating in Petco Health and Wellness'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
Petco Health and Wellness 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 Petco Health and Wellness 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 type of retirement savings plan does Petco Health and Wellness offer to its employees?

Petco Health and Wellness offers a 401(k) retirement savings plan to help employees save for their future.

Is there a company match for contributions to the 401(k) plan at Petco Health and Wellness?

Yes, Petco Health and Wellness provides a company match for employee contributions to the 401(k) plan, subject to certain limits.

How can employees at Petco Health and Wellness enroll in the 401(k) plan?

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

What is the eligibility requirement for Petco Health and Wellness employees to participate in the 401(k) plan?

Most employees at Petco Health and Wellness are eligible to participate in the 401(k) plan after completing a specified period of service.

Can employees at Petco Health and Wellness take loans against their 401(k) savings?

Yes, Petco Health and Wellness allows employees to take loans against their 401(k) savings, subject to plan rules and limits.

What investment options are available in the 401(k) plan at Petco Health and Wellness?

The 401(k) plan at Petco Health and Wellness offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.

How often can employees at Petco Health and Wellness change their 401(k) contribution amounts?

Employees at Petco Health and Wellness can change their 401(k) contribution amounts at any time, subject to the plan’s guidelines.

What is the vesting schedule for the company match in the 401(k) plan at Petco Health and Wellness?

Petco Health and Wellness has a specific vesting schedule for the company match, which employees can review in the plan documents.

Are there any fees associated with the 401(k) plan at Petco Health and Wellness?

Yes, there may be administrative fees associated with the 401(k) plan at Petco Health and Wellness, which are disclosed in the plan documents.

Can employees at Petco Health and Wellness roll over their 401(k) savings from a previous employer?

Yes, employees at Petco Health and Wellness can roll over their 401(k) savings from a previous employer into the Petco Health and Wellness 401(k) plan.