Tax Cuts and Jobs Act Archives - EMPLOYEE BENEFITS BLOG

Treasury/IRS Release Proposed Regulations on Section 4960 Excise Tax

By Ralph E. DeJong and Robert C. Louthian, III 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 important clarifications. Access the full article.

Fifth Circuit Issues ACA Ruling, But Severability Question Remains

By Michael B. Kimberly, Eric Zimmerman, Ankur J. Goel and Matthew A. Waring on Dec 26, 2019
Posted In Benefit Controversies, Employee Benefits, Health and Welfare Plans

A decision in Texas v. United States was issued by a divided three-judge panel of the US Court of Appeals for the Fifth Circuit on December 18, 2019. This case presented once again the question whether the Affordable Care Act (ACA) is constitutional and sustainable, and questions of severability remain for the near future. Access the full article.

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

By Andrew Liazos, Erika Mayshar, Joseph K. Urwitz, Ralph E. DeJong and Robert C. Louthian, III 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 to comply with this guidance will be challenging. Access the full article.

What Employers Need to Know About 162(m)

By Andrew Liazos on Dec 27, 2018
Posted In Employee Benefits, Executive Compensation

Andrew Liazos presented on 162(m) deduction limitations and transition rules at NYU’s 77th Institute on Federal Taxation. Amongst other topics, he discussed key changes for employers under the 2017 Tax Cuts and Jobs Act, the guidance provided under Notice 2018-68 and the potential impact of such changes on incentive compensation practices. View the full presentation.

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

By David Fuller, Erika Mayshar, Erin Steele, Joseph K. Urwitz, Ralph E. DeJong, Robert C. Louthian, III and Samantha Souza 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 employers with rules of special interest to tax-exempt employers. Access the full article.

New Proposed Regulations Provide Helpful Guidance on Hardship Distribution Changes

By Alan D. Nesburg, PC and Sarah L. Engle on Nov 27, 2018
Posted In Employee Benefits, Retirement Plans

The IRS recently issued proposed amendments to regulations concerning 401(k) plan hardship distributions. The proposed regulations address changes to hardship distribution rules from the Bipartisan Budget Act of 2018 and other legislation. Though the regulations are only proposed, 401(k) plan sponsors should promptly consider these changes because decisions should be made on applying certain optional changes, which generally can be effective for plan years beginning after December 31, 2018. Access the full article.

IRS Issues Long-Awaited Initial Guidance under Section 162(m)

By Andrew Liazos, Joseph K. Urwitz, Maureen O'Brien and William R. Pomierski on Aug 23, 2018
Posted In Employee Benefits, Executive Compensation

On August 21, 2018, the IRS issued guidance regarding recent statutory changes made to Section 162(m) of the Internal Revenue Code. Overall, Notice 2018-68 strictly interprets the Section 162(m) grandfathering rule under the Tax Cuts and Jobs Act. Public companies and other issuers subject to these deduction limitations will want to closely consider this guidance in connection with filing upcoming periodic reports with securities regulators. Further action to support existing tax positions or adjustments to deferred tax asset reporting in financial statements may be warranted in light of this guidance. Access the full article.

Exec Retirement Vehicle Seen as a Potential Gamble for Employers

By Andrew Liazos on Jul 19, 2018
Posted In Employee Benefits, Executive Compensation, Retirement Plans

Andrew Liazos said that it makes sense for companies to consider Q-SERPs in response to the end of the performance-based pay deduction, but he questioned whether the plans would offer much “bang for your buck.” “You first have to deal with the obvious time and effort you have to spend to show it’s not discriminatory, and then take a certain level of risk that the rules aren’t going to change,” he said. Access the full article. Originally published in Tax Notes Today, July 2018.

IRS Releases FAQs on Paid Family and Medical Leave Credit

By Judith Wethall, David Fuller and Samantha Souza on Jun 14, 2018
Posted In Employee Benefits, Employment, Health and Welfare Plans

The IRS released guidance in April on the new credit for paid family and medical leave. In FAQ form, this guidance helps employers gauge whether their current policies are sufficient, or whether implementation of conforming paid leave policies may be necessary. Access the full article.

Governing Health Podcast Series: Health Care Industry Executive Compensation Trends

By Michael W. Peregrine and Ralph E. DeJong 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, and McDermott partner Ralph DeJong.

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