OBBBA provisions require cross-functional coordination among payroll, benefits and finance teams, and employers should coordinate such efforts now to ensure that payroll and HRIS systems are ready for the transition before...more
Many early-stage companies give employees, consultants, advisors, board members and other service providers (referred to as “service providers”) an opportunity to own a stake in the company through the grant of compensatory...more
Crypto may be back on the table for 401(k) plans, but fiduciary duties remain as demanding as ever. On May 28, 2025, the U.S. Department of Labor Employee Benefits Security Administration (DOL) issued Compliance Assistance...more
New proposed regulations under Section 162(m) of the Internal Revenue Code would further limit deductibility of executive compensation paid by a publicly held corporation....more
Private company clients frequently ask us about granting compensatory stock options to their founders, employees and other service providers, including board members, consultants and advisors. Options and other equity awards...more
9/12/2024
/ Board Members ,
Business Development ,
Compensation & Benefits ,
Early Stage Companies ,
Entrepreneurs ,
Fair Market Value ,
Income Taxes ,
Internal Revenue Code (IRC) ,
Shareholders ,
Startups ,
Stock Options ,
Stocks ,
Valuation ,
Venture Capital
The SEC takes a highly anticipated first step toward updating Rule 701 and Form S-8 -
Amendments to Rule 701 would increase the cap on exempt offerings and ease disclosure burdens.
Revisions to Form S-8 would permit...more
1/22/2021
/ Fair Market Value ,
Financial Statements ,
GAAP ,
Gig Economy ,
Internal Revenue Code (IRC) ,
Offerings ,
Proposed Rules ,
Reporting Requirements ,
Securities Act of 1933 ,
Securities and Exchange Commission (SEC) ,
Securities Exchange Act of 1934 ,
Valuation
IRS guidance on new law permitting income tax deferral for private company equity compensation awards provides clarity by introducing more rules.
The Section 83(i) deferral opportunity is only available for awards granted...more
4/16/2019
/ Corporate Governance ,
Equity Compensation ,
Internal Revenue Code (IRC) ,
IRS ,
Opt-Outs ,
Privately Held Corporations ,
Restricted Stocks ,
Stock Options ,
Tax Cuts and Jobs Act ,
Tax Deferral ,
Withholding Tax
The Fifth Circuit Court of Appeals’ rejection of the DOL’s Fiduciary rule reintroduces the 1975 five-factor fiduciary test and creates uncertainty for plan sponsors, plan fiduciaries and investment advisors.
After years of...more
6/29/2018
/ Administrative Procedure Act ,
Benefit Plan Sponsors ,
Best Interest Contract Exemptions ,
Chevron Deference ,
Department of Labor (DOL) ,
Employee Retirement Income Security Act (ERISA) ,
Fiduciary Duty ,
Fiduciary Rule ,
Financial Services Industry ,
Individual Retirement Account (IRA) ,
Investment Adviser ,
Regulatory Oversight ,
Retirement Plan
Increased Rule 701 threshold provides greater flexibility and reduces compliance costs for non-reporting companies.
Recently enacted legislation rolling back Dodd-Frank directs the SEC to increase the Rule 701 enhanced...more
6/22/2018
/ Deregulation ,
Disclosure Requirements ,
Dodd-Frank ,
Economic Growth Regulatory Relief and Consumer Protection Act ,
Financial Regulatory Reform ,
Foreign Private Issuers ,
GAAP ,
Reporting Requirements ,
Rule 701 ,
Rulemaking Process ,
Securities and Exchange Commission (SEC) ,
Securities Exchange Act ,
Trump Administration
The future of the Department of Labor’s Fiduciary rule is in limbo following the Fifth Circuit’s decision striking it down “in toto.”
The future of the Fiduciary rule is uncertain, particularly in light of the Fifth...more
4/12/2018
/ Administrative Procedure Act ,
Best Interest Contract Exemptions ,
Broker-Dealer ,
Department of Labor (DOL) ,
Employee Benefits ,
Employee Retirement Income Security Act (ERISA) ,
Fiduciary Duty ,
Fiduciary Rule ,
Investment Adviser ,
Retirement Plan ,
Securities and Exchange Commission (SEC)
Legislation enacted in recent months should result in fewer operational errors and expanded participant opportunities.
The Tax Cuts and Jobs Act extends the period a participant may make a tax-free loan rollover to an IRA...more
3/9/2018
/ 401k ,
Benefit Plan Sponsors ,
Bi-Partison Balanced Budget Act (BBA) ,
Employee Benefits ,
Hardship Distributions ,
IRA Rollovers ,
QMAC ,
QNEC ,
Retirement Plan ,
Tax Cuts and Jobs Act ,
Wildfires
The department extends non-enforcement policy until July 1, 2019 and plans to propose a new streamlined class exemption under the Fiduciary rule.
The DOL finalized its delay of certain portions of the Fiduciary rule until...more
12/15/2017
/ Best Interest Contract Exemptions ,
Broker-Dealer ,
Department of Labor (DOL) ,
Employee Retirement Income Security Act (ERISA) ,
Fiduciary Duty ,
Fiduciary Rule ,
Individual Retirement Account (IRA) ,
Investment Adviser ,
Retirement Plan ,
Securities and Exchange Commission (SEC) ,
Trump Administration
On August 9, 2017, the Department of Labor (DOL) and Secretary of Labor, Alexander Acosta, submitted a proposal to the Office of Management and Budget (OMB) to further delay the applicability date of certain parts of the...more
On April 7, 2017, the Department of Labor (DOL) published a final rule delaying the applicability date of the “Fiduciary” rule and certain “Prohibited Transaction Exemption” rules (the Rules) for 60 days from April 10, 2017...more
5/3/2017
/ Best Interest Contract Exemptions ,
Conflicts of Interest ,
Department of Labor (DOL) ,
Employee Benefits ,
Employee Retirement Income Security Act (ERISA) ,
Fiduciary Duty ,
Fiduciary Rule ,
First Amendment ,
Free Speech ,
Investment Adviser ,
Retirement Plan ,
Trump Administration
On March 2, 2017, the Department of Labor (DOL) proposed to delay the applicability date of the “Fiduciary” rule by 60 days. The DOL issued the proposal in response to the February 3, 2017, Presidential Memorandum...more