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

Healthcare Provider Update: Healthcare Provider for Primoris Services: Primoris Services offers health insurance benefits through various insurance carriers, which may include larger providers like UnitedHealthcare, Cigna, and Anthem, among others. The specific provider may vary by location and the plan selected by employees. Healthcare Cost Increases in 2026: As Primoris Services looks ahead to 2026, employees should brace for significant healthcare cost increases. With the potential expiration of enhanced federal premium subsidies, many are anticipated to face a staggering rise in out-of-pocket expenses, with some states estimating hikes of over 60% in healthcare premiums. Employers, reacting to these financial pressures, are likely to adjust benefit structures, shifting more costs onto employees. This upcoming year may fundamentally challenge healthcare affordability for many households, making it essential for employees to review their healthcare options and strategies carefully. Click here to learn more

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

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

The 401(k) plan at Primoris Services is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are deducted.

How can I enroll in the Primoris Services 401(k) plan?

Employees can enroll in the Primoris Services 401(k) plan by completing the online enrollment process through the company’s benefits portal during the enrollment period.

Does Primoris Services offer matching contributions to the 401(k) plan?

Yes, Primoris Services offers matching contributions to the 401(k) plan, which helps employees grow their retirement savings.

What is the maximum contribution limit for the Primoris Services 401(k) plan?

The maximum contribution limit for the Primoris Services 401(k) plan follows the IRS guidelines, which can change annually. Employees should check the current limits for accuracy.

Can I change my contribution percentage to the Primoris Services 401(k) plan?

Yes, employees can change their contribution percentage to the Primoris Services 401(k) plan at any time through the benefits portal.

What investment options are available in the Primoris Services 401(k) plan?

The Primoris Services 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles suitable for retirement savings.

When can I start withdrawing funds from my Primoris Services 401(k) plan?

Employees can start withdrawing funds from their Primoris Services 401(k) plan upon reaching the age of 59½, subject to certain conditions.

Are there any penalties for early withdrawal from the Primoris Services 401(k) plan?

Yes, there are typically penalties for early withdrawal from the Primoris Services 401(k) plan, including a 10% penalty tax on amounts withdrawn before age 59½.

How often can I change my investment allocations in the Primoris Services 401(k) plan?

Employees can change their investment allocations in the Primoris Services 401(k) plan as frequently as allowed by the plan, typically on a daily basis.

Does Primoris Services provide financial education regarding the 401(k) plan?

Yes, Primoris Services offers financial education resources and workshops to help employees understand their 401(k) plan and make informed investment decisions.