Reporting Developments Affecting Employee Benefits and Executive Compensation
This installment of the overview of the Proposed Regulations under Code Section 162(m) focuses on the definition of what is “applicable employee remuneration.” As a reminder, Code Section 162(m) generally limits the compensatory deduction to the first $1 million of “applicable employee remuneration” paid by a publicly held corporation to each covered employee.
Read MoreEffective January 17, 2020, civil money penalties for certain violations of the Health Insurance Portability and Accountability Act of 1996 (HIPAA) have been adjusted for inflation by the Department of Health and Human Services (HHS), as required by the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Inflation Adjustment Act).
Read MoreToday’s installment of our overview of the Proposed Regulations under Code Section 162(m) highlights the expansion of who is a “covered employee.” As a reminder, Code Section 162(m) generally limits the compensatory deduction to the first $1 million of compensation paid by a publicly held corporation to each “covered employee.”
Read MoreAs we noted in our December 24, 2019 blog entry, on December 16, 2019, the Treasury Department released proposed regulations (the “Proposed Regulations”) addressing the amendments made to Internal Revenue Code Section 162(m) by the Tax Cuts and Jobs Act (the “Amendment”).
Read MoreIt has been several years since the US Supreme Court issued a decision in a case involving the Employee Retirement Income Security Act of 1974 (ERISA). In the upcoming term, the U.S. Supreme Court has agreed to review three ERISA cases. Below is a summary of the ERISA cases that are in front of the US Supreme Court in its upcoming 2019-2020 term.
Read MoreOn December 16, 2019, the Treasury Department released proposed regulations (the “Proposed Regulations”) to address the amendments made to Code Section 162(m) by the Tax Cuts and Jobs Act (the “Amendment”). As background, the Amendment eliminated the exclusion attributable to qualified performance-based compensation from the $1 million cap on the deductibility of compensation paid to certain executives by a publicly held corporation.
Read MoreIn 2017, the IRS significantly limited the ability of plan sponsors to request a determination letter that its individually-designed retirement plan met the tax qualification requirements of the Internal Revenue Code. Since that date, plan sponsors could request determination letters only upon the plan’s initial qualification or termination.
Read MoreA bifurcated benefit option allows participants to receive a portion of their benefit as a lump sum payment and the remainder as an annuity. While this option is somewhat uncommon, if your defined benefit plan offers it, you may have a December 31, 2019, deadline to adopt a compliance amendment to the plan.
Read MorePrivate equity fund sponsors can breathe a sigh of relief last week as the First Circuit Court of Appeals, reversing a district court finding, held that two separate private equity funds sharing a general partner (Sun Capital Partners III and Sun Capital Partners IV) were not jointly and severally liable under the Employee Retirement Income Security Act of 1974, as amended (ERISA) for the multiemployer pension withdrawal liability of a portfolio company in which both funds invested.
Read MoreThe Internal Revenue Service recently published final regulations modifying the rules relating to hardship distributions from Sections 401(k) and 403(b) plans. The final regulations reflect statutory changes affecting Section 401(k) and 403(b) plans, including changes made by the Bipartisan Budget Act of 2018.
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