Both the House and Senate versions of tax reform propose significant changes that may reduce or eliminate the tax benefits of many popular employer-provided fringe benefits, such as dependent care assistance programs, on-premises gyms and bicycle commuting expense reimbursements. In addition, many common deductions for work-related activities—including certain meal and entertainment expenses—may see sweeping changes.
Tax Breaks in the New Hurricane Legislation for Employers and Taxpayers
The Disaster Tax Relief and Airport and Airway Extension Act of 2017 provides a new favorable tax credit for eligible employers affected by recent hurricanes, as well as expanded charitable deductions and tax credits for certain taxpayers. Continue Reading.
New Hurricane Legislation Grants Additional Distribution, Withdrawal and Loan Relief for Certain Retirement Plan Participants
The new Disaster Tax Relief and Airport and Airway Extension Act of 2017 provides additional relief and flexibility for retirement plan participants impacted by recent hurricanes, including relaxed rules for plan distributions, withdrawals and loans.
Employers Can Provide Tax-Free Disaster Assistance to Employees
Section 139 of the Internal Revenue Code allows an employer to provide tax-free qualified disaster relief payments to Texas and Louisiana employees in designated areas affected by Hurricane Harvey.
Proposed 457(f) Regulations: Opportunities and Challenges
The 2016 proposed regulations significantly expanded 457(f) plan sponsors’ ability to permit elective deferrals, use noncompetition agreements and make larger severance payments than otherwise permitted under 409A without immediate taxation to participants. In a recent presentation, Ruth Wimer, Mary Samsa and Joseph Urwitz discuss the surprising opportunities with respect to tax-exempt and governmental entities’ “ineligible nonqualified deferred compensation” arrangements in 2016 regulations. They also address the rules and limitations of the short-term deferral exception, the interaction of the 2016 regulations with existing regulations, other types of arrangements potentially affected, as well as best practices for employers.
Employee Benefits Programs in May
Join members of the McDermott Employee Benefits team in May at one of these programs covering a variety of employee benefits topics.
The John Marshall Law School The Center for Tax Law & Employee Benefits 14th Annual Employee Benefits Symposium | May 1, 2017 | Chicago, Illinois | Speaker, Joseph S. Adams
Proposed 457(f) Regulations: Opportunities and Challenges | May 3, 2017 | Webinar presented by Mary K. Samsa, Joseph K. Urwitz, Ruth Wimer
M&A Workshop: New Developments and Key Legal and Tax Issues Throughout the Life Cycle of a Deal | May 4, 2017 | Chicago, Illinois | Speaker, Joseph S. Adams
Benefits Emerging Leaders Working Group | May 10, 2017 | Chicago, Illinois | Speakers, Lisa K. Loesel, Lisa Schmitz Mazur, Jacob M. Mattinson, Jeffrey Arnold, Sarah Raaii
IRS Issues Revised Requirements for Employers to Claim FICA Tax Refunds
On March 20, 2017, the Internal Revenue Service (IRS) issued Revenue Procedure 2017-28, which provides guidance to employers on obtaining employee consents used to support a claim for credit or refund of overpaid taxes under the Federal Insurance Contributions Act (FICA) and the Railroad Retirement Tax Act (RRTA). This OTS describes the new procedures and provides valuable information regarding the rules for amending past employment tax returns due to the over- or under-payment of Social Security, Medicare and Federal income tax on employee wages.
Payroll Get Ready — Employers Face New January 31st Filing Deadline for W-2 and 1099-MISC Forms
Beginning with W-2 forms filed with respect to 2016 wages, a new law requires employers to file the government copy by January 31, 2017, for both paper and electronic copies. The accelerated deadline also applies to 1099-MISC forms for independent contractors.
Section 457(f) Proposed Regulations – Not What We Expected (In a Good Way)
The very long awaited release of the new proposed regulations for Internal Revenue Code (the ‘‘Code’’) Section 457(f) plans arrived at the end of June and presents welcome and surprising new opportunities with respect to tax-exempt and governmental entities’ ‘‘ineligible nonqualified deferred compensation’’ arrangements.
The Proposed Regulations present some unexpected and surprising opportunities with respect to the ability to electively defer compensation and to have deferred compensation paid out, contingent on a valid covenant not to compete and upon a rolling risk of forfeiture.
Read the full article here to learn more.
New York and San Francisco Approve Mandatory Paid Family Leave
Both the State of New York and the City of San Francisco recently granted paid family leave to eligible employees. Paid family leave becomes effective on January 1, 2017, in San Francisco and on January 1, 2018, in New York.