News & Analysis as of

Wage and Hour FICA Taxes

McDermott Will & Emery

Just Catching Up? Payroll Challenges Plague Roth Catch-Up Contribution Implementation

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In this series of articles, we explore the implications of SECURE 2.0’s changes to catch-up contributions and how employers should respond. The SECURE 2.0 Act requires participants who earned more than $145,000 in FICA...more

McGlinchey Stafford

Reporting Cash Tips to the IRS [More with McGlinchey, Ep. 24]

McGlinchey Stafford on

In restaurants, the wait staff, bartenders, and bussers are required to report their tips, including cash tips, to the restaurant and the IRS. Even if those cash tips aren’t reported to the restaurant, since tips are income...more

Jackson Walker

Payroll Tax Relief and Latest Developments in Retirement Plans and Benefits

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Payroll Tax Relief Under CARES Act, FFCRA, and Executive Order - While the Coronavirus Aid, Relief, and Economic Security (CARES) Act permitted employers to defer depositing the portion of the FICA taxes the employer pays...more

Morgan Lewis

Supplemental Unemployment Benefit Plans Offer Tax Advantages to Employers Seeking to Support Laid-Off Workers

Morgan Lewis on

Employers considering layoffs in the face of the coronavirus (COVID-19) crisis have additional opportunities to support furloughed workers, aside from options offered by the CARES Act. ...more

BCLP

IRS Releases 2020 Adjusted Qualified Plan Limitations

BCLP on

The Internal Revenue Service released the cost-of-living adjusted qualified retirement plan limitations effective January 1, 2020. For ease of reference and comparison to prior years, we have placed the adjusted limitations...more

McDermott Will & Emery

Worker Classification: Complications Beyond the Front Page

California’s Dynamex Rolls Out The ABC Test And The Presumption Of Employment - ? The burden is placed on the employer to prove IC status ? Individual is deemed an employee unless employer demonstrates prongs A, B, and...more

Burr & Forman

Unpaid Federal Employment Taxes: The Government’s Chief Enforcement Priority

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Businesses that have employees must pay wages and salaries to their employees, and the employer must collect federal employee income taxes and the employee’s share of social security (FICA) from these wages and salaries, add...more

Foley & Lardner LLP

Incentive Compensation That is Never Subject to Income Tax – Too Good to Be True?

Foley & Lardner LLP on

Clients frequently ask if they can provide incentive compensation to their employees and executives in a manner that gives them flexibility and drives performance, but receives coveted capital gains treatment. This usually...more

Foley & Lardner LLP

Equity Compensation and the Rise of Restricted Stock Units

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In recent years, equity compensation programs have increasingly been using restricted stock units (RSUs). A manufacturing company recently made news when it granted RSUs worth millions of dollars to thousands of its employees...more

Burr & Forman

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

Burr & Forman on

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

Mintz - Employment Viewpoints

How State Legislatures May Rock the World of Employee Compensation in Response to the Recent Federal Tax Law

Prior to the effective date of the tax bill recently signed by the President, Section 164 of the Internal Revenue Code permitted individuals who itemized deductions to deduct state and local income and other designated taxes...more

Littler

The Dear Departed: Making Final Wage Payments for Deceased Employees

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The death of an employee is an unfortunate fact of life for businesses.  Nonetheless, employers may be ill-prepared for the inevitable issues that arise from the sad event.  Of concern are: Because state law largely controls...more

McGuireWoods LLP

Déjà Vu All Over Again: Congress Grants Retroactive Transit Parity, IRS Issues Payroll Guidance

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As discussed in a prior WorkCite article, the recently enacted Consolidated Appropriations Act, 2016 (the Act) permanently removed the disparity between the taxation of (i) commuter vehicle/transit benefits and (ii) qualified...more

Troutman Pepper

California Court Upholds Payroll Tax Withholding on Back Pay and Front Pay Judgment - Tax Update Vol. 2015, Issue 4

Troutman Pepper on

The opinion adopts well-established federal law and overturns a 22-year-old California case that held that withholding was not required. Everyone knows that, when an employer pays wages to an employee, the employer...more

Best Best & Krieger LLP

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

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

Carlton Fields

What Employers Must Know About Wage and Hour Law

Carlton Fields on

This year, according to a recent Syracuse University study, federal courts are on track to handle a record number of wage-and-hour lawsuits stemming from violations of the Fair Labor Standards Act (FLSA), which establishes...more

Stinson LLP

U.S. Department of Labor's New Guidance on Independent Contractors Highlights a Key Risk Area for Employers

Stinson LLP on

Businesses should carefully assess any independent contractor arrangements in light of an “Administrator’s Interpretation” issued on July 15, 2015 by the U.S. Department of Labor’s Wage and Hour Division (DOL). While the...more

Littler

California Appellate Court Holds Employer Must Withhold Taxes on Back Pay

Littler on

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

Troutman Pepper

New Independent Contractor Misclassification Study Is Belied By Government Report and Disregards the Legitimate Use of Independent...

Troutman Pepper on

The Economic Policy Institute, a respected nonprofit, nonpartisan think tank, has just released a working paper authored by a respected professor who co-authored a number of early academic studies detailing independent...more

Dechert LLP

Is There Quality to the Argument That Severance Payments Are Not Taxable "Wages"? – Supreme Court Holds That Severance Payments...

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Earlier this week, on March 25, 2014, the U.S. Supreme Court handed down a highly publicized decision in the case of United States v. Quality Stores. In Quality Stores, the Court unanimously held that the severance payments...more

McDermott Will & Emery

Deadline Looms for Quality Stores FICA Refund Claims for Severance Payments

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The Supreme Court of the United States recently heard arguments in its review of the U.S. Court of Appeals for the Sixth Circuit’s Quality Stores decision. At issue in Quality Stores is whether certain severance payments...more

Laner Muchin, Ltd.

Are You Prepared To Comply With New Employment Laws And Requirements In 2014?

Laner Muchin, Ltd. on

The New Year brings new employment laws and requirements for businesses. For example, as reported in the most recent edition of The Fast Laner, Illinois became the last state to allow people to carry concealed firearms....more

FordHarrison

Restaurant Industry Newsletter - January 2014

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Tax Ruling Impacts the Use of Mandatory Service Charges - Executive Summary: Beginning on January 1, 2014, "mandatory gratuities" or service charges are no longer considered "tips" by the Internal Revenue Service, and...more

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