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COVID-19 Relief for Employee Benefit Plan Deadlines

The U.S. Department of Labor (DOL) recently announced deadline relief for employee benefit plan notices, disclosures or document deadlines that must be furnished between March 1, 2020 and 60 days after the announced end of the COVID-19 National Emergency (“Outbreak Period”), if the employee benefit plan and responsible fiduciary act in good faith and furnish … Continue Reading

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

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

U.S. Supreme Court grants writ of certiorari on Railroad Retirement Tax Act issue

  The U.S. Supreme Court is poised to resolve a split between the Seventh and Eighth Circuits related to a federal program that is a well-kept secret. Nothing as intriguing as Russian spies or hacked emails… but, I think, interesting nonetheless. Of course, you have heard about the Social Security system. And you probably know … Continue Reading

U.S. tax reform – retirement plan provisions finalized

The tax reform bill is done.  President Trump signed the bill on December 22, meeting his deadline for completion by Christmas. While there is much to be said about the Tax Cuts and Jobs Act (the “Act”), the update on the retirement plan provisions is relatively unexciting.  Recall that when the tax reform process started, … Continue Reading

U.S. Tax Reform – Death to Nonqualified Deferred Compensation?

The recently released Republican tax reform proposal (H.R. 1 – Tax Cuts and Jobs Act) has a provision that would effectively be a death knell for many common types of nonqualified deferred compensation plans. Under the Bill, nonqualified deferred compensation will be subject to income tax when there is “no substantial risk of forfeiture”.  In … Continue Reading

Threat to 401(k) plans?

With U.S. tax reform on the horizon, there are some reports that lawmakers are considering limiting annual pretax contribution limits to 401(k) plans to $2,400.  The current tax code allows most workers to contribute up to $18,000 on a pretax basis to 401(k) plans.  At this time, it is uncertain whether there will be any … Continue Reading
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