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

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

Healthcare Provider Update: Healthcare Provider and Cost Increases for Western Union Employees Western Union employees' healthcare coverage is typically provided through a major health insurer, with specific details often outlined in their employee benefits package. As 2026 approaches, Western Union employees should brace for potential increases in healthcare costs. Significant hikes in premiums are anticipated, particularly due to the expiration of enhanced federal ACA premium subsidies that could push out-of-pocket costs up by over 75% for many. Additionally, as a response to rising medical expenses driven by inflation3 (projected at 7-10% annually) and the high costs of certain medications, employers, including Western Union, may shift additional financial burdens onto employees by increasing deductibles and out-of-pocket maximums. Understanding these changes and preparing accordingly is crucial for employees navigating the upcoming healthcare landscape. Click here to learn more

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

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

The 401(k) plan offered by Western Union is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are taken out.

How can employees enroll in Western Union's 401(k) plan?

Employees can enroll in Western Union's 401(k) plan through the company’s benefits portal or by contacting the HR department for assistance.

Does Western Union match employee contributions to the 401(k) plan?

Yes, Western Union offers a matching contribution to employees who participate in the 401(k) plan, up to a certain percentage of their salary.

What are the eligibility requirements for Western Union's 401(k) plan?

Employees are typically eligible to participate in Western Union's 401(k) plan after completing a specified period of employment, which is outlined in the employee handbook.

Can employees change their contribution rate to Western Union's 401(k) plan?

Yes, employees can change their contribution rate to Western Union's 401(k) plan at any time, subject to the plan’s rules.

What investment options are available in Western Union's 401(k) plan?

Western Union's 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 Western Union's 401(k) matching contributions?

Yes, Western Union has a vesting schedule for its matching contributions, which means employees must work for a certain period before they fully own those contributions.

How often can employees access their 401(k) account statements at Western Union?

Employees can access their 401(k) account statements online through the benefits portal, typically on a quarterly basis.

What happens to the 401(k) plan if an employee leaves Western Union?

If an employee leaves Western Union, they can choose to roll over their 401(k) balance to another retirement account, cash out, or leave it in the Western Union plan if allowed.

Are there loans available against the 401(k) plan at Western Union?

Yes, Western Union's 401(k) plan may allow employees to take loans against their account balance, subject to specific terms and conditions.