On February 26, the U.S. Supreme Court in Intel Corporation Investment Policy Committee v. Sulyma unanimously held that participants are not presumed to read retirement plan investment information....more
Retirement plan committees are being asked whether to add the coronavirus-related retirement plan distribution and loan provisions to their retirement plans. ...more
This article intends to help your payroll or finance departments prepare to take advantage of the employment tax credits provided by the Families First Coronavirus Response Act (FFCRA), signed into law on March 18, 2020....more
Whether the economy is in a financial downturn or your particular organization is hitting a rough patch, at some point you will consider reducing costs. Welfare and retirement benefit expenses generally follow employee...more
This article focuses on 401(k) and 403(b) plans that are in one of the following situations:
1. The plan failed ADP or ACP testing and must distribute excess amounts to its higher-ranking employees or make additional...more
2/5/2020
/ 401k ,
403(b) Plans ,
457(b) Plans ,
Compensation & Benefits ,
Distribution Rules ,
Employee Benefits ,
Employee Retirement Income Security Act (ERISA) ,
Internal Revenue Code (IRC) ,
IRS ,
Nonprofits ,
Pass-Through Entities ,
Retirement Plan ,
Tax Deductions ,
Tax Planning
This article should interest employers that offer fringe benefits to employees in addition to regular pay. An updated IRS publication outlining how employers should tax certain fringe benefits (IRS Publication 15-B) was...more
A recently released case highlights the protection afforded by a retirement plan committee that takes its role seriously. In Scalia v. WPN Corp., No. 2:14-cv-01494, 2019 WL 4748052 (W.D. Pa. Sept. 30, 2019)), a Pennsylvania...more
11/15/2019
/ Breach of Duty ,
Department of Labor (DOL) ,
Employee Benefits ,
Employee Retirement Income Security Act (ERISA) ,
Enforcement Actions ,
Failure to Monitor ,
Fiduciary Duty ,
Investment Management ,
Investment Opportunities ,
Regulatory Oversight ,
Retirement Plan
On October 8, 2019, the U.S. Department of Treasury and the IRS released the 2019-2020 “Priority Guidance Plan” for the 12-month period running from July 1, 2019, through June 30, 2020. The plan sets out the agencies’...more
10/29/2019
/ 403(b) Plans ,
457(b) Plans ,
Audits ,
Employee Benefits ,
ESOP ,
Government Entities ,
IRS ,
New Guidance ,
Popular ,
Required Forms ,
Tax Exempt Entities ,
Tax Liability ,
Tax Planning ,
U.S. Treasury ,
UBTI
Retirement plan sponsors that implemented hardship distribution changes and other disaster relief in 2018 and 2019 probably have to amend their plan documents by the end of this year if they haven’t done so already. We...more
We noticed an uptick in employment tax issues, so thought a primer on employment taxation basics would be helpful. While this may be of general interest to in-house counsel and human resources professionals, it is probably...more
This alert focuses on Florida governmental entities that provide benefits to firefighters. Newly adopted Florida Statutes chapter 112.1816, scheduled to go into effect July 1, 2019, provides additional minimum benefits to...more
5/9/2019
/ Cancer ,
Compensation & Benefits ,
Employee Benefits ,
Employer Group Health Plans ,
Firemen ,
Florida ,
GASB ,
Government Entities ,
New Legislation ,
Retirement Plan ,
State and Local Government ,
Tax Planning
This article should interest employers who are offering or thinking about offering retiree medical coverage and should especially interest local governmental entities that are required to offer retiree medical coverage under...more
On April 19, 2019, the IRS updated its guidance on the official methods of correction that can be used by tax qualified and 403(b) retirement plans (and, to a lesser extent, 457 plans). ...more
This alert should interest sponsors of retirement plans subject to IRC sections 401(k), 403(b), or 457(b) that authorize hardship distributions (often called “unforeseeable emergency distributions” in 457(b) plans)....more
Federal contractors subject to the Service Contract Act might appreciate knowing that the IRS understands that they must generally offer a cash payment to employees who decline coverage....more
All entities, including governmental entities, are now potentially liable for penalties due to overpaying employees....more
6/27/2018
/ Bonuses ,
Compensation & Benefits ,
Deferred Compensation ,
Excise Tax ,
Government Entities ,
Retirement Plan ,
Risk Assessment ,
Severance Pay ,
Tax Exempt Entities ,
Tax Liability ,
Tax Planning ,
Wages
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...more
2/20/2018
/ Business Taxes ,
Employee Benefits ,
Family and Medical Leave Act (FMLA) ,
New Legislation ,
Paid Leave ,
Paid Time Off (PTO) ,
Tax Credits ,
Tax Cuts and Jobs Act ,
Tax Deductions ,
Tax Incentives ,
Tax Rates ,
Tax Reform ,
Trump Administration
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...more
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...more
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. ...more
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....more
12/6/2017
/ Benefit Plan Sponsors ,
Best Interest Contract Exemptions ,
Conflicts of Interest ,
Consumer Financial Products ,
Department of Labor (DOL) ,
Employee Benefits ,
Employee Retirement Income Security Act (ERISA) ,
Fiduciary Duty ,
Fiduciary Rule ,
Financial Services Industry ,
Investment Adviser ,
Investment Management ,
Regulatory Oversight ,
Retirement Plan
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...more
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...more
10/25/2017
/ Affordable Care Act ,
Association Health Plans ,
Cost-Sharing ,
Department of Labor (DOL) ,
Employer Mandates ,
Executive Orders ,
Health Insurance ,
Healthcare Reform ,
Individual Mandate ,
IRS ,
Qualified Small Employer Health Reimbursement Plan (QSEHRAs) ,
Trump Administration
This article should interest employers offering retirement plan benefits or leave donation programs to employees affected by Hurricanes Harvey and Irma, in particular, and in various states of emergencies, in general. It...more
Employers offering wellness program rewards should be aware that some medical insurance salespeople are recommending arrangements that fail to comply with applicable law....more