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IRS Reverses Course on the application of Qualified Healthcare Expenses to the Employee Retention Tax Credit, and Clarifies Credit Eligibility in the event of a PPP Loan Repayment

In our blog post dated May 7, 2020, we noted that the IRS Question and Answers regarding the Employee Retention Tax Credit (the “ERTC” & the “Q&As”) stated that an employer cannot claim an ERTC for qualified health care expenses, unless it also pays the employee other wages during the relevant time period. We further noted … Continue Reading

Employee Retention Tax Credits – Q&As

New guidance issued by the US Internal Revenue Service in the form of Q&As posted on its website, clarify the Employee Retention Tax Credit (ERTC) provisions contained in the CARES Act. The guidance is more restrictive than anticipated, and employers may face difficult decisions about claiming the tax credits. Our latest publication explores this issue … Continue Reading

IRS Publishes Frequently Asked Questions on Payroll Tax Deferral

The Coronavirus Aid, Relief, and Economic Security (CARES) Act provides employers a number of economic relief programs, including deferral of employers’ share of quarterly social security tax deposits and forgivable Payroll Protection Program (PPP) loans. The IRS recently released a set of frequently asked questions and answers regarding the CARES Act’s deferral of quarterly Social … Continue Reading

COVID-19: UK Employee Share Schemes

Employee retention is a high priority for businesses grappling with the profound impact of the coronavirus disease 2019 (COVID-19). Employee share schemes remain a versatile and valuable way to retain important employees. However, many may not have considered the unexpectedly adverse tax consequences that some of the UK government’s business support measures (including, for example, … Continue Reading

Top 10 Employee Benefits Issues in a Slowing Economy

Coronavirus disease 2019 (COVID-19), commonly known as the “coronavirus” has raised many challenges for businesses. Among those challenges are the variety of employee related issues being raised. In addition to complying with various employment laws, including the new emergency leave laws and tax credits (see our blog), employers also have to consider the impact on … Continue Reading

Taxation of UK Termination Payments: Don’t be an April Fool

With most employer’s minds currently focused on the upcoming changes to the IR35 regime, it’s important they do not forget about forthcoming updates to the tax treatment of termination payments which are also due to take effect next month. Employer’s NIC on Termination payments Currently, the only tax on termination payments made to employees to … Continue Reading

EMI options – the wait is over!

Since 6 April 2018 companies have been unable to grant new EMI options, because the existing EU state aid approval expired without fresh approval having been received. So there has been much excitement today at the news that the EU Commission has now given state aid approval, and companies can now grant new EMI options. … Continue Reading

Tottenham Hotspur FC 2 : 0 HM Revenue & Customs

Football, football teams, footballers, footballer’s pay… a comprehensive review of the case law on the taxation of termination payments… this one has got it all! The match… the case (HM Revenue & Customs v Tottenham Hotspur Limited) concerns termination payments made to Peter Crouch and Wilson Palacios. The facts are relatively straightforward. Both player’s contracts with Tottenham … Continue Reading

Good Work? Must try harder on tax

The report resulting from the Taylor Review of Modern Working Practices (the Taylor Review), ‘Good Work‘, was finally published on 11 July 2017. The Taylor Review’s primary focus was new ways of working, the ‘gig’ economy, worker rights and responsibilities, and employer freedoms and obligations. Although tax was not (formally at least) within its remit, … Continue Reading

Less is more: further consultation on simplification of taxation of termination payments

In a previous post, we were less than wholly welcoming to the Government’s proposals for the simplification of the tax and NIC treatment of payments in the context of the termination of employment.  The proposals were put out to consultation in July 2015 and a report on the responses, launching further consultation on the draft … Continue Reading

Simplifying employment status – moving forward at a glacial pace

At the Autumn Statement last week the Government announced that it had responded to the Office of Tax Simplification (OTS) report on employment status originally published in March and it was “taking forward the majority of its recommendations”. Now, 9 months after the March report, a letter from HM Treasury has emerged indicating which of … Continue Reading

Happy new (UK tax) year! – action required for all share incentive plans

In several posts last year, we charted the development of the new HMRC rules for the online registering, self-certifying and making of annual returns for share plans, and indeed all arrangements under which employees receive shares. Now the dust has settled, the teething troubles have been ironed out and the templates for the new “end-of-year” returns … Continue Reading

Clawback and HMRC v Martin – where are we now?

As the dust settles on the eagerly awaited HMRC v Martin decision (see our previous blog post), thoughts are inevitably turning to how that decision impacts on an employer’s approach to clawback payments, particularly in the world of variable remuneration. Whilst the judge in the Martin decision was clear that his conclusion turned on the … Continue Reading

A Take-Away from the Quality Stores Decision

The U.S. Supreme Court’s recent decision in United States v. Quality Stores, Inc., No. 12-1408.,188 L. Ed. 2d 413, has broader implications for employers than its legal holding. On its face, the holding is that supplemental unemployment compensation benefits paid to terminated employees after a reduction in force or closing of an operation are subject … Continue Reading
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