In Mennemeyer v. Commissioner,1 the United States Tax Court reminds us that a settlement agreement that is not carefully drafted can have significant tax consequences....more
The One Big Beautiful Bill Act (OBBBA), which was signed into law on July 4, 2025, establishes the pilot program for the “Trump account,” an investment account for U.S. citizens under age 18 with a social security number....more
7/23/2025
/ Employee Benefits ,
Employee Contributions ,
Employer Responsibilities ,
Financial Institutions ,
Income Taxes ,
Investment ,
IRS ,
New Legislation ,
One Big Beautiful Bill Act ,
Retirement Plan ,
Tax Planning
On July 3, 2025, the U.S. House of Representatives narrowly passed H.R.1, the so-called “One Big Beautiful Bill Act,” ending a dramatic journey through Congress that dominated headlines in recent weeks. President Donald J....more
In the recent United States Tax Court case O’Connor v. Commissioner of Internal Revenue, Judge Arbeit sanctioned the petitioner for advancing frivolous arguments contesting the authority of the IRS to assess tax....more
5/20/2025
/ Constitutional Challenges ,
Employees ,
Employer Liability Issues ,
Employer Responsibilities ,
Income Taxes ,
Internal Revenue Code (IRC) ,
Penalties ,
Reporting Requirements ,
Sixteenth Amendment ,
Tax Court ,
Tax Liability ,
Wage and Hour
The IRS’s recently released Revenue Ruling 2025-4 provides significant guidance on the employment tax treatment of contributions to and benefits paid under state paid family and medical leave (PFML) programs. This has been an...more
1/23/2025
/ Compliance ,
Corporate Taxes ,
Employee Benefits ,
Employment Tax ,
Family Medical Leave ,
Income Taxes ,
IRS ,
Paid Leave ,
Reporting Requirements ,
State Labor Laws ,
Tax Liability
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
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
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
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
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
11/10/2021
/ 401k ,
403(b) Plans ,
457(b) Plans ,
Compensation & Benefits ,
Employee Benefits ,
Fringe Benefits ,
Income Taxes ,
Internal Revenue Code (IRC) ,
IRS ,
Retirement Plan ,
Tax Deductions
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: 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
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
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
On February 26, 2020, the IRS published proposed regulations implementing changes made by the Tax Cuts and Jobs Act of 2017 (TCJA) regarding the elimination of deductions for entertainment and the limitation on food and...more
2/28/2020
/ Business Expenses ,
Business Taxes ,
Corporate Counsel ,
Income Taxes ,
Internal Revenue Code (IRC) ,
IRS ,
Meals-Gifts-and Entertainment Rules ,
Proposed Regulation ,
Tax Cuts and Jobs Act ,
Tax Deductions ,
Tax Planning
Businesses with operations in California have begun to identify options and implement strategies for compliance with Assembly Bill (AB) 5, which imposes the ABC test for identifying whether a worker is an independent...more
10/30/2019
/ 1099s ,
ABC Test ,
Corporate Counsel ,
Corporate Restructuring ,
Employee Definition ,
Employer Liability Issues ,
Employment Tax ,
Freelance Workers ,
Gig Economy ,
Hiring & Firing ,
Income Taxes ,
Independent Contractors ,
IRS ,
Labor Regulations ,
Misclassification ,
Out-of-State Employees ,
Retroactive Application ,
Safe Harbors ,
State and Local Government ,
State Labor Laws ,
Tax Rates ,
Wage and Hour
Dear Littler: My company recently hired a new employee who is giving our human resources department some pushback on submitting his W-4. The HR manager says the employee mentioned something about not being subject to income...more
In Sharp v. Commissioner, the United States Tax Court once again demonstrated the importance of carefully crafting settlement agreements and reaffirmed that emotional distress damages are taxable income to the recipient....more