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

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

Healthcare Provider Update: Healthcare Provider for Pitney Bowes Pitney Bowes provides its employees with access to various healthcare plans through its collaboration with several insurance providers. Typically, these include major insurers such as Aetna, Anthem Blue Cross Blue Shield, and Cigna, which offer comprehensive coverage options. Employees generally have access to health plans that include medical, dental, vision, and wellness programs, aimed at enhancing the overall well-being of their workforce. Potential Healthcare Cost Increases for Pitney Bowes in 2026 As Pitney Bowes navigates the healthcare landscape in 2026, it faces substantial challenges marked by impending cost increases. With projections indicating employer-sponsored insurance costs could rise by approximately 8.5%, this escalation is driven by rising claims and medical inflation. The expiration of enhanced ACA subsidies further complicates the situation, as it may lead to increased out-of-pocket premiums for employees, potentially exceeding 75%. In response, Pitney Bowes may consider strategic adjustments to its healthcare offerings, focusing on cost management to maintain employee satisfaction and access to necessary care. Click here to learn more

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

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

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

How does Pitney Bowes match employee contributions to the 401(k) plan?

Pitney Bowes offers a matching contribution to the 401(k) plan, which typically matches a percentage of the employee's contributions, helping to enhance retirement savings.

Who is eligible to participate in the Pitney Bowes 401(k) plan?

All full-time and part-time employees of Pitney Bowes are eligible to participate in the 401(k) plan after meeting specific service requirements.

Can employees of Pitney Bowes take loans against their 401(k) savings?

Yes, Pitney Bowes allows employees to take loans against their 401(k) savings, subject to certain limits and repayment terms outlined in the plan.

What investment options are available in the Pitney Bowes 401(k) plan?

The Pitney Bowes 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and company stock, allowing employees to diversify their portfolios.

How can employees at Pitney Bowes access their 401(k) account information?

Employees can access their 401(k) account information through the Pitney Bowes benefits portal or by contacting the plan administrator directly.

What is the vesting schedule for the Pitney Bowes 401(k) plan?

The vesting schedule for the Pitney Bowes 401(k) plan typically requires employees to work for a certain number of years before they fully own the employer's matching contributions.

Can employees of Pitney Bowes change their contribution percentage to the 401(k) plan?

Yes, employees at Pitney Bowes can change their contribution percentage to the 401(k) plan at any time, subject to plan rules.

What happens to the 401(k) savings if an employee leaves Pitney Bowes?

If an employee leaves Pitney Bowes, they can choose to roll over their 401(k) savings into another retirement account, cash out, or leave the funds in the Pitney Bowes plan, depending on the balance.

Does Pitney Bowes offer educational resources for employees regarding their 401(k) plan?

Yes, Pitney Bowes provides educational resources and tools to help employees understand their 401(k) options and make informed investment decisions.