Not only does the Tax Cuts and Jobs Act contain a tax incentive to promote the offering of paid family medical leave (FML), but it creates a lower-cost way to eliminate common complications that arise when employees are unable to continue paying health plan premiums while on unpaid leave. Tax Incentive. Specifically, newly created IRC 45S provides a tax credit for employers with an eligible paid FML policy. Generally, the policy must provide for payment of at least 50 ... Keep Reading »
Practical Insights on DOL Guidance Affecting Retirement, Medical and Disability Plans
On January 5, the Department of Labor (DOL) announced that regulations it previously proposed will apply to certain retirement and medical disability claims filed after April 1. This article focuses on a few practical considerations. Practical Comments. We recommend employers consider the following when weighing whether the new regulations will impact benefit plans: Normally, when we think of “disability claims,” we think of medical plans or short or long term ... Keep Reading »
A Game Plan for Employers Facing Possible ACA Penalties
All employers are at risk of receiving a notice from the IRS that they are liable for a penalty under the Affordable Care Act for failing to offer enough employees insurance coverage, or for failing to offer particular employees insurance coverage. This alert offers a game plan to implement upon receipt of that notice. Continue Reading on CarltonFields.com » ... Keep Reading »
Parking Is Now A Taxable Expense
In the latest version of the Tax Cuts and Jobs Act that awaits the President’s signature, employers will be taxed on amounts spent after December 31, 2017 on employee parking. For-profit employers that deduct expenses may not deduct costs for employee parking. Similarly, employers that do not deduct expenses (i.e., tax-exempt and governmental entities) will be subject to unrelated business taxable income on the expenses they incur for employee parking. For each of these ... Keep Reading »
The DOL’s Fiduciary Rule: An Update and Practical Advice
This updates our August 15 blog entry, which targeted employers who sponsor retirement or welfare plans and are concerned about their fiduciary liabilities for properly selecting service providers. On November 27, the Department of Labor (DOL) announced that portions of the “Fiduciary Rule” that would govern certain service providers will be delayed from January 1, 2018 to July 1, 2019, while the DOL examines President Trump’s concerns that the Fiduciary Rule might ... Keep Reading »