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The Global Guide Quarterly (Quarter 2, 2024)

A new General Labor Law (NGLL) was enacted by Law No. 12/23, of 27 December 2023, which came into force on March 26, 2024.The NGLL repealed the former General Labor Law (approved by Law No. 7/15, of June 15, 2015),...more

IRS Issues FAQs on Educational Assistance Programs

The IRS has issued a new fact sheet (FS-2024-22) to address frequently asked questions about educational assistance programs (EAPs), also known as Section 127 plans....more

IRS Updates FAQs on 1099-Ks Used for Gig Workers and Others

The IRS recently updated its guidance for completing Form 1099-K, used primarily by “gig” companies providing compensation using payment apps or online marketplaces and for individuals selling goods on online marketplaces...more

Court Holds Backup Withholding Required by Law Does Not Violate a Settlement Agreement

In Escano v. Innovative Financial Partners, LLC, a magistrate judge held that the defendants’ decision to withhold funds from a payment required under a settlement agreement when the plaintiff refused to provide a Form W-9...more

Watch Out New York – New Jersey Wants Its Taxes Too!

On July 21, 2023, New Jersey Governor Phil Murphy signed Assembly Bill No. S3128/A4694 into law, which implements an aggressive tax treatment of nonresidents who work for New Jersey employers.  The law essentially adopts the...more

Nevada Passes Legislation Creating Licensing Requirements for Earned Wage Access Providers

On June 15, 2023, Nevada Governor Joe Lombardo signed SB 290, which requires early wage access (EWA) providers to obtain a license from the Commissioner of Financial Institutions. This is the first EWA law enacted by any...more

Certificates of Coverage Necessary for Expatriate Workers to Claim FICA Exemption under Totalization Agreements

In an opinion issued on June 20, 2023, the United States Court of Federal Claims reminded taxpayers that they must obtain a certificate of coverage in order to claim an exemption from Social Security and Medicare taxes (FICA)...more

The Global Guide Quarterly (Quarter 4, 2022)

The Global Guide Quarterly (GGQ) is a newsletter Littler publishes on a quarterly basis to provide a general update on global labor and employment (L&E) law developments in key countries in the American, EMEA, and APAC...more

Settled a Lawsuit with a Government Agency Last Year? Form 1098-F Reporting of Fines and Penalties is Coming Due

As part of the 2017 Tax Cuts and Jobs Act (Act), Congress enacted Internal Revenue Code (Code) section 6050X, which requires government agencies (and certain nongovernmental regulatory agencies) to issue information returns...more

Department of Labor and IRS Intensify Cooperation on Worker Misclassification

On December 14, 2022, the U.S. Department of Labor (DOL) and the Internal Revenue Service (IRS) signed and published a Memorandum of Understanding for Employment Tax Referrals (the “MOU”). The MOU establishes a system for...more

IRS Raises Standard Mileage Rate for July to December 2022

On June 9, 2022, the Internal Revenue Service issued Announcement 2022-13, increasing the optional standard mileage rate for the final six months of 2022 from 58.5 cents per mile to 62.5 cents per mile.  The new rate will be...more

IRS Releases 2022 Inflation Adjustments to Various Tax Limitations on Employer-Provided Benefits

On November 10, 2021, the IRS released Revenue Procedure 2021-45, which contains its annual inflation adjustments for over 60 tax provisions, including not only individual income tax rates and deductions, but also many...more

New Jersey Quietly Rolls Back Temporary Suspension of Employer Withholding Rules for Teleworking Employees

Effective October 1, 2021, the New Jersey Division of Taxation (the “NJDT”) ended the temporary relief period with regard to employers’ obligation to withhold income taxes for teleworking employees who work in New Jersey.1 ...more

Dear Littler: What is so Taxing about our Wandering Workers?

Dear Littler: You alerted us to some wage & hour and leaves & benefits issues stemming from our “wandering workers” who have scattered across the country during the pandemic, yet continue to work for our Texas-based company....more

Inaugural Report of Littler’s Global Workplace Transformation Initiative

Executive Summary - The COVID-19 pandemic required nearly every employer around the globe to take stock of its workforce, policies and practices, and adapt to a rapidly changing and unpredictable environment. COVID-19...more

Tax Court Reiterates the Proper Tax Treatment of “Physical Injuries” in Employment Cases

In Stassi v. Commissioner, the United States Tax Court found that a settlement was not excludable from income as a personal physical injury because the taxpayer failed to demonstrate that her shingles was caused by her...more

Treasury Department Issues Guidance on Payroll Tax Deferral

On August 28, 2020, the U.S. Department of the Treasury issued guidance for employers with respect to the deferral of the employee portion of certain payroll taxes.  This guidance stems from a presidential memorandum issued...more

IRS Issues Guidance on PTO Donations to Charity

In Notice 2020-46, the IRS explains how employees can forgo their paid time off balances to allow their employers to make donations to charities that are assisting individuals impacted by the COVID-19 pandemic....more

IRS Reverses Course on Employee Retention Credit for Qualified Health Plan Expenses

The IRS has changed its position and will allow employers to receive a tax credit for paying health care plan premiums for employees on furlough....more

A PPP Dilemma: Can Employers Exclude Employees Who Refuse to Return to Work from their Loan Forgiveness Calculation?

One of the most enticing reasons to obtain a loan under the Paycheck Protection Program (PPP) is the potential for the loan’s forgiveness. The federal Coronavirus Aid, Relief, and Economic Security (CARES) Act authorized the...more

Department of Labor Issues New Guidance on Work Sharing Programs

The Department of Labor (DOL) recently issued new guidance to states on the Short-Time Compensation (STC) program provisions (also known as “work sharing” or “shared work”) in the Coronavirus Aid, Relief, and Economic...more

Pennsylvania Supreme Court Narrows Independent Contractor Test Under State’s Unemployment Law

On April 22, 2020, the Pennsylvania Supreme Court issued a decision affecting the classification of independent contractors for purposes of the state Unemployment Compensation Law (UCL)....more

DOL Clarifies That Gig Workers Can Qualify for COVID-19 Unemployment Benefits When Their Work Dries Up

The Department of Labor has clarified that gig workers qualify as “unemployed” under the Pandemic Unemployment Assistance (PUA) Program when they lose a significant amount of business because of COVID-19. ...more

Dear Littler: Are There Any Tax Implications Now That Our Employees Are Teleworking During The COVID-19 Crisis?

Dear Littler: Our company is based in New York City, but since March 20 our employees have been teleworking because of the “stay at home” orders necessary to combat the spread of COVID-19. Most of our employees are working...more

DOL Provides Further Guidance on Pandemic Unemployment Assistance

On Sunday April 5, 2020, the U.S. Department of Labor (DOL) issued Unemployment Insurance Program Letter (UIPL) 16-20 to provide further guidance on Section 2102 of the Coronavirus Aid, Relief, and Economic Security (CARES)...more

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