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 »
Tax Reform and Accumulated Leave (aka “Special Pay”) Plans
Provisions in the current proposed Senate tax reform bill would likely reduce the effectiveness of retirement plan arrangements that regularly receive contributions of unused leave for former employees, commonly known as “accumulated leave” or “special pay” plans. As a result, affected entities and individuals would be subjected to greater employment taxation and more immediate income taxation. Continue reading on CarltonFields.com » ... Keep Reading »
Executive Orders May Be Asking Too Much of Regulators
On October 12, President Trump signed Executive Order 13813, asking the Department of Labor (DOL) to consider allowing small employers to join together to self-insure or purchase insurance as a large group (creating “Association Health Plans”); asking the IRS, DOL, and HHS to expand the usability of Health Reimbursement Arrangements (HRAs); and asking to expand the use of short-term limited duration insurance (the latter of which is not the focus of this blog). On that ... Keep Reading »
An Update: Retirement Plans, Leave Donation Programs, and Loans for Relief During States of Emergencies
Following our September 18 article, “Retirement Plan and Leave Donation Programs During States of Emergencies,” the Internal Revenue Service (IRS) and Congress acted to provide additional relief and assistance opportunities to those affected by Hurricanes Harvey, Irma, and Maria. In an effort to increase donations to assist those in need, the IRS issued guidance to allow employers to set up programs that enable employees to elect to have unused leave converted to cash ... Keep Reading »