Ralph E. DeJong Ralph E. DeJong

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Ralph E. DeJong advises clients on the compensation, executive benefits and employee benefits of tax-exempt organizations. He provides counsel on designing and preparing deferred and incentive compensation arrangements, leading governing boards in the review and approval of executive and physician compensation arrangements, negotiating and preparing executive and physician employment agreements, and analyzing the private inurement and intermediate sanctions implications of executive and physician compensation and benefit arrangements. Read Ralph DeJong's full bio.

Treasury/IRS Release Proposed Regulations on Section 4960 Excise Tax


By and on Jun 25, 2020
Posted In Employee Benefits, Employment, Executive Compensation

The US Department of the Treasury has released long-expected proposed regulations regarding the section 4960 excise tax on certain remuneration or separation amounts paid to the five highest paid employees of a tax-exempt organization. The new proposed regulations continue the tough approach previously taken on section 4960 issues, while also providing some new exceptions and...

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Reassessing Executive Compensation and Benefits in Tax-Exempt Organizations as the COVID-19 Crisis Deepens


By on Jun 9, 2020
Posted In Executive Compensation

Hospitals, health systems and other tax-exempt organizations are responding to a longer and deeper economic crisis by making or considering significant changes to their executive compensation and executive benefit programs. The economic crisis, and these executive compensation and benefit changes, have far-reaching implications for the ongoing work of the board’s compensation committee. We want to...

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CARES Act Impacts All Benefit Plans


By , , , , , , , , , , and on Mar 31, 2020
Posted In Employee Benefits, Employment, Executive Compensation, Health and Welfare Plans, Retirement Plans

In the ongoing effort to help individuals impacted by COVID-19, Congress passed the Coronavirus Aid, Relief, and Economic Securities Act (CARES Act) on March 27, 2020. The President signed the CARES Act into law the same day. The historic stimulus package provides wide-ranging relief for both employers and employees. This includes rules that impact health...

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The 10 Most Significant Matters CEOs Should Know About Their Employment Contracts


By on Jan 30, 2020
Posted In Employee Benefits, Employment, Executive Compensation

The most significant issues in any employment or severance agreement are going to be personal to that situation, and will be driven in part by special issues and circumstances. For instance, succession planning issues may be incredibly important to the organization when the CEO is 65 years old and there is no clear successor, and...

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SCOTUS Refuses to Review Ninth Circuit Ruling on ACA Birth Control Rules


By and on Jul 11, 2019
Posted In Employee Benefits, Health and Welfare Plans

The US Supreme Court declined to review a recent Ninth Circuit decision, blocking the interim rules that exempted employers with religious or moral objections from providing birth control coverage required by the Affordable Care Act (ACA). Until such time as this issue is clarified, it is prudent for employers with employees in certain states to...

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Top Takeaways for Tax-Exempts from IRS Guidance on Executive Compensation


By , , , and on Jan 10, 2019
Posted In Employee Benefits, Executive Compensation

One of the more controversial and complex provisions of the Tax Cuts and Jobs Act has been the 21 percent excise tax on certain nonprofit executive compensation. On December 31, 2018, the IRS issued interim guidance that addresses how this tax will apply in various situations that commonly arise for tax-exempt employers. Establishing internal systems...

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Free Parking Only Exists in Monopoly: New IRS Guidance Makes Employer-Provided Parking More Costly and Burdensome Than You Think


By , , , , , and on Dec 20, 2018
Posted In Employee Benefits

As part of its comprehensive 2017 tax reform bill, Congress repealed deductions for Qualified Transportation Fringes including for employer-provided parking, while also requiring that tax-exempt organizations increase their unrelated business taxable income by the nondeductible parking expenses. Recently released IRS Notice 2018-99 addresses some of the year-end tax filing and tax planning concerns for affected...

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Governing Health Podcast Series: Health Care Industry Executive Compensation Trends


By and on May 15, 2018
Posted In Employee Benefits, Executive Compensation

Executive compensation for the health care industry is always an important topic for the board, made even more critical by the provisions of the Tax Cuts and Jobs Act and recent governance trends. We’re joined by two of the leading health care industry voices on executive compensation practices: Tim Cotter of Sullivan, Cotter and Associates,...

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How the Tax Act Upsets the Board/Executive Compensation Committee Dynamic


By and on Jan 23, 2018
Posted In Executive Compensation

Michael Peregrine and Ralph DeJong wrote this bylined article about what they called the “enormous consequences” for tax-exempt hospital senior executive compensation due to the new Tax Cuts and Jobs Act provisions that place an excise tax on executive compensation and benefits. “From a corporate governance perspective, the significance of these new provisions carries the...

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Tax Reform Bill Becomes Law: Lessons for Tax-Exempt Organizations


By , , , and on Dec 28, 2017
Posted In Employee Benefits, Executive Compensation, Retirement Plans

Tax-exempt organizations—especially hospitals and health systems—face a new tax reality now that both houses of Congress have voted to pass the final tax reform bill. Continue Reading.

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