Corporations looking to use partnerships to avoid the executive compensation deduction limitation may be out of luck. The new proposed regs (REG-122180-18) on the section 162(m) executive compensation deduction limitation include a rule on compensation paid by a partnership to an executive of a publicly held corporation that’s subject to the limitation. McDermott’s Andrew C. Liazos contributes to a Tax Notes article that takes a look at these new regulations and what they mean for partnership arrangements. Access the full article. Originally published on Tax Notes, December 2019
In-house counsel and human resources professionals at tax-exempt colleges and universities often face a variety of challenges when structuring, and determining obligations due under, severance arrangements. There are some key considerations to bear in mind, which are outlined in this article. Access the full article.
With the uncertainty of the general election just one year away—and change on the horizon—now is the time to take stock of the legal and regulatory environment to prepare your organization for the future. On September 10 in Boston, the ERISA Industry Committee (ERIC), Fidelity and McDermott invite you to join your peers and colleagues for breakfast and an interactive discussion at 8 am EDT around hot topics in benefits and compensation. Areas of focus will include: Congressional action on healthcare—from Rx costs to surprise billing Direct contracting for health plans Federal and state paid leave Lasting impacts of tax reform New leveraged ESPP funding alternative Student loan repayment plans The SECURE Act and what comes next Register for the event.
Executives are no longer reluctant to lawyer up. News reports on executive/employer contretemps at Papa John's, Barnes & Noble, Uber and other companies have drawn press attention in the past year; countless other executive/employer disputes have flown below radar. Underlying these controversies is the executive’s employment agreement, typically the most high-stakes and closely negotiated employment agreements to which companies will contract. Yet, these agreements often contain less clarity and less certainty than either executives or their employers need. Indeed, there appear to be three areas where these contracts could and should be upgraded. Let’s look at each. Access the full article. Originally published by Law360, February 2019.
Fridays with Benefits Webinar | All in the Family: 21st Century Benefit Plan Strategies for Family-Owned Businesses
Those were the days: when family-owned businesses paid only passing attention to the business value of providing tax-efficient—and incentivizing—benefit plans and compensation options. Tomorrow, Employee Benefits partner Todd Solomon and Private Client partner Bobbi Bierhals join host Judith Wethall during our Fridays with Benefits webinar series to discuss benefit plans and compensation strategies for modern family-owned companies and family offices. Join our lively 45-minute discussion, where we’ll discuss the following points: Benefit plan options and unique challenges for family-owned companies and family offices The latest compensation strategies to incentivize employees Options for providing value without a direct ownership stake in the family-owned company Friday, June 7, 2019 10:00 – 10:45 am PST 11:00 – 11:45 am MST 12:00 – 12:45 pm CST 1:00 – 1:45 pm EST Register Now.
As an update on an important matter that we raised during McDermott’s May 8 Tax Symposium, it is critical to promptly assess whether to report any excise taxes imposed under Section 4960 as the deadline for filing Form 4720 is May 15, 2019 for calendar year taxpayers. Section 4960 of the Internal Revenue Code imposes a 21% excise tax on compensation over $1 million paid to the five highest paid employees of a tax exempt organization, including a private foundation (PF). For purposes of applying Section 4960, the Internal Revenue Service includes compensation paid by related taxable organizations, which may include publicly held or privately held corporations that control who sits on the PF’s board of trustees. Set forth below are the key issues relevant to establishing a reasonable, good faith position under Notice 2019-9 that the Section 4960 excise tax should not apply to volunteer officers of a PF who receive all of their compensation from taxable...
In a presentation at McDermott’s Employment and Employee Benefits Forum, Jeffrey Holdvogt discussed qualified plans, including student loan repayment benefits and the rise of DOL/IRS/PBGC plan activity. He also commented on the scrutiny on plan governance and fiduciary process materials. He addressed the legal challenges and mandates, such as state laws protecting against balance billing by out-of-network providers. View the full presentation.
In a presentation at McDermott’s Employment and Employee Benefits Forum, Andrew Liazos discussed areas of focus for Section 162(m) and third-party loan funding for employee stock purchase plans (ESPPs). He also provided insight on the new SEC final rule on hedging, and the 21 percent excise tax on pay over $1 million to covered employees at tax-exempt organizations. View the full presentation.
In a presentation at McDermott’s Employment and Employee Benefits Forum, our lawyers discuss the patchwork of state and local laws surrounding pay equity for similarly situated employees doing the same job. Particularly in California, new developments have emerged further clarifying pay equity laws. For best practices, they recommend: Establishing compensation ranges across substantially similar jobs Taking into account job-related factors when establishing and evaluating employee compensation Conducting pay equity analysis under privilege Performing a thoughtful time analysis and remedial action View the full presentation.
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 to comply with this guidance will be challenging. Access the full article.