FICA Taxes, Internal Revenue Code (IRC)

A New “One Percent” Tax Issue – Proposed IRS Regulations on the Excise Tax on Stock Repurchases

The Wagner Law Group on 8/26/2024

The Department of the Treasury (“Treasury”) and the Internal Revenue Service (“IRS”), in an April 2024 follow-up to IRS Notice 2023-2, issued proposed regulations dealing with the one-percent excise tax under Internal Revenue...more

The Trust Fund Penalty – Times May be Tough, But Don’t “Borrow” from Withheld Taxes

Rivkin Radler LLP on 10/6/2023

It’s wonderful to be part of a successful business, especially in a strong economy. The owners are probably enjoying a more than just decent return on their investment and, in most cases, are getting along well enough. The...more

Withholding Taxes: Deferred Comp and Services Overseas

Rivkin Radler LLP on 9/7/2023

Approaching Year End- Which holiday do you dread the most? For me, it has always been, and likely will always be, Labor Day. Of course, with each passing year, anything that I describe as “always” is less meaningful than...more

Oh Won’t You Stay…Until the Bonus is Paid

Holland & Hart - The Benefits Dial on 12/12/2022

A new interpretation by the Colorado Department of Labor and Employment (CDLE) could have significant tax impacts under Internal Revenue Code Section 409A (409A). Many bonus and incentive programs require that the intended...more

Nonqualified Deferred Compensation and the Special Timing Rule HR Professionals Should Be Aware of for FICA Tax Purposes

Verrill on 12/15/2021

Twenty years ago this month the Enron Corporation imploded in spectacular fashion and declared bankruptcy. In the weeks leading up to its bankruptcy filing, over 100 highly compensated employees raced to receive early...more

Three Tax Principles that HR Professionals Should Know

Dickinson Wright on 3/1/2021

Although it might not be obvious, tax law permeates most HR responsibilities – from paying an employee, to arranging for benefit coverages, to settling employment lawsuits, and paying pensions. Knowing a few key tax...more

Our D.I.V.O.R.C.E. … Is Going To Be Tricky For My Employer To Handle

Holland & Hart - The Benefits Dial on 11/3/2020

Nonqualified deferred compensation plans often include anti-assignment language prohibiting a plan participant from assigning benefits to anyone. Because top-hat plans are exempt from most aspects of ERISA including the...more

Payroll Tax Deferral: Uncertainties Remain One Week Prior to Start of Applicable Period

Faegre Drinker Biddle & Reath LLP on 8/26/2020

On August 8, 2020, President Trump signed an executive memorandum (the Memo) directing Treasury Secretary Mnuchin to issue guidance deferring the withholding, deposit and payment by employers of the employee portion of...more

Globally (Not So) Mobile Employees: Taxation of RSU Equity Awards in a COVID-19 World

McDermott Will & Emery on 4/29/2020

The rules relating to the US taxation of restricted stock units (RSUs) in an international context are often complex and sometimes uncertain. This On the Subject explores how COVID-19-related travel restrictions affect the US...more

IRS Issues Guidance on the Deferral of Income from Private Corporation Stock Options and Restricted Stock Units

White & Case LLP on 1/7/2019

On December 22, 2017, the Tax Cuts and Jobs Act (the "Act") was signed into law. The Act added a new Section 83(i) to the Internal Revenue Code of 1986, as amended (the "Code"), pursuant to which certain employees of eligible...more

The New Section 199A 20% “Profit Deduction” for Pass-Through Businesses: The Undecided Issue of Owner Compensation

Burr & Forman on 2/13/2018

Under the Tax Cuts and Jobs Act, Congress is now offering a new 20% deduction for “pass-through” businesses – i.e. businesses that are not corporations. With the corporate tax rate being reduced under the new law to a flat...more

The FICA Tax Exemption For Non-Resident Aliens In The U.S. Under F, J, M, Or Q Visas

Jackson Lewis P.C. on 8/3/2017

A common issue for employers of non-resident aliens authorized to work in the U.S. is whether (and when) such individuals are exempt from FICA taxation. Under the Internal Revenue Code, a nonresident alien (“NRA”) in the...more

Tribal Tax Parity Legislation Gains Ground in Congress

Holland & Knight LLP on 7/7/2017

In the past month, members of Congress have introduced two important bills that promote parity for tribal governments and their tribal council members. The Tribal Social Security Fairness Act would allow tribal...more

FICA Taxes and Administrative Traps for Employers

Sullivan & Worcester on 4/17/2017

The nuances of the Social Security and Medicare tax system – collectively FICA taxes – continue to confound and increase the potential liability of employers who are not well versed in this area....more

Best in Law: Tax Ruling Confirms Protocol on Job-Related Judgments

Best Best & Krieger LLP on 10/7/2015

The California Court of Appeal recently confirmed that employment-related settlements or judgments are wages from which employers must withhold payroll taxes. In Cifuentes v. Costco Wholesale Corp., Cifuentes...more

IRS Updates Guide to Auditing Nonqualified Deferred Compensation Plans

Bradley Arant Boult Cummings LLP on 7/20/2015

The Internal Revenue Service (IRS) recently updated its “Nonqualified Deferred Compensation Audit Techniques Guide.” The Guide provides a framework for the IRS to audit nonqualified deferred compensation (NQDC) plans. Since...more

California Appellate Court Holds Employer Must Withhold Taxes on Back Pay

Littler on 7/8/2015

On June 26, 2015, a California appellate court rendered a precedential opinion that should hopefully put to rest the issue of whether an employer must withhold taxes on settlements or judgments made to former employees in...more

Davidson v. Henkel — What’s Going On With Nonqualified Deferred Compensation Plans and FICA

Jackson Walker on 6/17/2015

In This Presentation: - Davidson v. Henkel Corp. - The Parties - NQ Plan - The Plan’s Tax Clauses - Davidson’s Pre-Retirement Counseling - 2011 Compliance Review and Letter - Henkel’s Tax...more

Tax Alert: New Executive Compensation Regulations Clarify Timing of Taxation

Nexsen Pruet, PLLC on 4/8/2014

The Internal Revenue Service recently published final regulations under Section 83 of the tax code. These regulations deal with the timing for taxation for grants of property (e.g., stock) that are subject to...more

IRS Issues Final Regulations on Substantial Risks of Forfeiture under Code Section 83

Sherman & Howard L.L.C. on 3/28/2014

On February 25, 2014, the Treasury Department issued final regulations identifying the circumstances in which a substantial risk of forfeiture would exist under Section 83 of the Internal Revenue Code (the “Code”)....more

Supreme Court Justices Consider Taxability of Certain Severance Pay During Quality Stores Oral Arguments

Ogletree, Deakins, Nash, Smoak & Stewart,... on 1/16/2014

Yesterday the Supreme Court of the United States heard oral arguments in United States v. Quality Stores, Inc., a case on appeal from the Sixth Circuit Court of Appeals. A circuit court split had spurred the Court to hear the...more

FICA Taxes › Internal Revenue Code (IRC)

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