Understanding Employee Benefits

Department of Labor’s New Guidance Helps Employers of Uniformed Service Members Manage Pension Obligations

By

The Department of Labor’s Veterans Employment and Training Services (“VETS”) issued a new fact sheet (“Fact Sheet”) to help employers better manage their pension obligations under the Uniform Services Employment and Reemployment Rights Act (“USERRA”). USERRA creates certain rights and protections for uniformed service members. For example, under USERRA, service... Read More

Topics: Compensation Questions, Retirement Plans

All Businesses, even if not Subject to 162(m), Should Consider Gathering Data to Support Future Deduction of Deferred Compensation under the Grandfather Rule

By

As mentioned in a previous blog, the IRS has issued its initial guidance on Code Section 162(m), as modified by the Tax Cuts and Jobs Act.  One important aspect of the guidance is its discussion of preserving deductibility under the transition rule, also known as the 162(m) “grandfather” rule. Under... Read More

Topics: Compensation Questions, Deferred Compensation and 409A, Executive Compensation

When is a LLC Profits Interest not a Profits Interest? U.S. Tax Court: “When it is a Capital Interest”*

By

On December 2, 2013, the United States Tax Court issued its opinion in Crescent Holdings, LLC et al vs. Commissioner, 141 T.C. No. 15 (12/2/13) wherein it examined the tax rules applicable to transfers of partnership interests as compensation. Crescent Holdings, LLC (“Holdings”) was a limited liability company and the... Read More

Topics: Compensation Questions, Deferred Compensation and 409A, ERISA and Other Benefits Litigation, Executive Compensation, Uncategorized

Too Much Discretion With Respect to Annual Bonuses May Cause Deferral of the Employer’s Deduction

By

In an IRS Field Attorney Advice Memorandum (FAA 20134301F) dated September 18, 2013, the IRS Office of Chief Counsel reviewed several common bonus plan designs in connection with a request for an opinion with regard to the timing of the employer’s tax deduction with respect to the accrual and payment... Read More

Topics: Compensation Questions, Deferred Compensation and 409A, Executive Compensation

No More Pre-Tax Premiums for Individual Insurance Policies?

By

Over the years we have seen some employers, particularly small employers, choose to provide health coverage to their employees by paying all or part of the premium for individual insurance policies that the employees have obtained. Under an old IRS revenue ruling, Rev. Rul. 61-146, that type of premium subsidy... Read More

Topics: Cafeteria Plans, Compensation Questions, Health Care Reform, Health Plan, Payroll, Welfare Plans

Next Stop: IRS Compliance Checks of Non-Governmental 457(b) Deferred Compensation Plans

By |

Recently the Employee Plans Compliance Unit (EPCU) of the Internal Revenue Service completed an informal compliance check of 401(k) plans conducted via an extensive written questionnaire sent to plan sponsors. The results of the compliance checks are being used to refine the focus of plan examination efforts. This week, the... Read More

Topics: Compensation Questions, Deferred Compensation and 409A, Executive Compensation, Retirement Plans