News & Analysis as of

Compensation & Benefits Income Taxes

Troutman Pepper Locke

IRS Issues Additional Guidance on Withholding and Reporting for Uncashed Retirement Plan Checks

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Uncashed checks can be an administrative headache for retirement plans, potentially raising fiduciary and compliance concerns. Why?...more

Pillsbury - Propel

Equity Compensation Primer: ISOs v. NSOs

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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

Maynard Nexsen

Preparing for Potential Payroll Changes: What Employers Need to Know About the No Tax on Tips Act and OBBBA

Maynard Nexsen on

On May 20, 2025, the No Tax on Tips Act, a standalone bill that would effectively exempt up to $25,000 in tips from federal income tax for certain workers, passed by unanimous consent in the Senate. Shortly thereafter, on May...more

Jackson Lewis P.C.

How Will Federal Bills Eliminating Tax on Tips and Overtime Impact Employers?

Jackson Lewis P.C. on

Tax breaks on overtime pay and tipped earnings passed the House on May 22, 2025, as part of the “One Big Beautiful Bill Act” (H.R. 1). The tax deductions provided under the sprawling reconciliation bill would be temporary,...more

Mayer Brown

Réforme du régime des gains de Management Packages par le PLF 2025

Mayer Brown on

Le projet de loi de finances pour 2025 tel que modifié le 31 janvier 2025 en commission mixte paritaire et adopté via la procédure de l’article 49-3 de la Constitution (le « PLF 2025 ») introduit un régime spécifique aux...more

Littler

Puerto Rico Department of the Treasury Announces 2025 Limits on Qualified Retirement Plans

Littler on

On January 23, 2025, the Puerto Rico Department of the Treasury issued Internal Revenue Circular Letter No. 24-01 (CL IR 24-01) announcing the applicable 2024 limits for Puerto Rico qualified retirement plans. Pursuant to...more

Fenwick & West LLP

IRS Filing and Reporting Requirements for ISO Exercises and ESPP Stock Transfers - January 2025

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The IRS has issued two forms (along with accompanying instructions) that corporations must use to satisfy the return and information statement requirements under Section 6039 of the Internal Revenue Code of 1986, as amended....more

Skadden, Arps, Slate, Meagher & Flom LLP

IRS Announces Proposed 162(m) Regulations Defining the Scope of Expanded Covered Employees

On January 16, 2025, the IRS and the Department of the Treasury published proposed regulations relating to Section 162(m) of the Internal Revenue Code. The proposed regulations provide guidance on, and implement, the...more

Gray Reed

Giving Season: Tax Edition

Gray Reed on

With the holiday season officially upon us, the Dollars and Sense team wants to make sure you maximize your giving and gifting! For so many businesses, and business owners, this time of year also means employer festivities,...more

Dickinson Wright

Employer-Provided Gifts: Taxable or Not?

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As we approach the holiday season, many employers consider giving employees a gift as a token of appreciation. What employers may not consider is whether those gifts create taxable income to employees....more

Lowenstein Sandler LLP

Stock Options and Section 409A: What You Need to Know

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On this episode of Just Compensation, Jessica Kriegsfeld speaks with Darren Goodman and Taryn E. Cannataro about stock options and Section 409A of the tax code, a complicated set of rules regulating the taxation of...more

Pillsbury - Propel

Equity Compensation: Navigating 409A Valuations

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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

Williams Mullen

PODCAST: Williams Mullen's Benefits Companion - IRS Clarifies Emergency Distributions Tax Exceptions

Williams Mullen on

On this episode of Williams Mullen's Benefits Companion, host Brydon DeWitt discusses the new IRS guidance regarding certain exceptions to the 10% early distribution tax under IRC 72(t). He will share background on emergency...more

Rivkin Radler LLP

An Inveterate Golfer At the IRS

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As we approach the deadline for paying federal individual income taxes and, generally, for filing the returns on which such taxes are determined, some of you may be recalling how the Inflation Reduction Act of 2022...more

Bennett Jones LLP

Incentivizing Employees: Avoiding a Salary Deferral Arrangement

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Incentivizing employees is a critical component of most business strategies. Employers may implement arrangements for deferred cash bonuses, often subject to the satisfaction of certain criteria. From a tax perspective, the...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Alabama to Exempt Overtime Compensation From State Income Tax, Starting January 1, 2024

On November 9, 2023, Alabama Governor Kay Ivey signed into law a bill that beginning on January 1, 2024, will make compensation received by full-time hourly wage-paid employees for overtime work performed in excess of 40...more

Orrick, Herrington & Sutcliffe LLP

Annual Reporting Requirements for Incentive Stock Options and Employee Stock Purchase Plans

For (1) any exercise of an incentive stock option (ISO) during 2022 or (2) transfer during 2022 of a share previously purchased pursuant to a tax-qualified employee stock purchase plan (ESPP), the Internal Revenue Code...more

Littler

UK Autumn Statement Round-up

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UK Chancellor Jeremy Hunt delivered the Autumn Statement (Medium-term Fiscal Plan) on November 17, 2022. The plan states that the government’s priorities are “stability, growth and public services,” and sets a markedly...more

Lowenstein Sandler LLP

Double Vesting Restricted Stock Units

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This episode of “Just Compensation” features Darren Goodman, Taryn Cannataro, and Megan Monson discussing restricted stock units (or RSUs). The panel describes what a RSU is, the pros/cons of issuing RSUs, and different types...more

Littler

IRS Releases 2022 Inflation Adjustments to Various Tax Limitations on Employer-Provided Benefits

Littler on

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

Morgan Lewis - ML Benefits

Separate State Filing Required for Form 1099-NEC

For the 2020 tax year, the Internal Revenue Service (IRS) moved reporting of certain nonemployee compensation, including current and deferred compensation paid to independent contractors and corporate directors, from Form...more

Mintz - Employment Viewpoints

Overview of the Impact of the Consolidated Appropriations Act on Employee Benefit Plans, Programs and Arrangements

Recently enacted H.R. 133, the Consolidated Appropriations Act, 2021 (“the Act”), is a massive, 5,593-page piece of legislation that includes appropriations for the U.S. government for the upcoming fiscal year and funding for...more

Jones Day

Employee Stock Plans: International Reporting Requirements

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This White Paper highlights some of the principal annual reporting requirements for employee stock plans that multinational companies most commonly encounter when offering these programs to their employees in selected...more

Jackson Walker

Consolidated Appropriations Act, 2021 Changes to Qualified Retirement Plans and Certain Fringe Benefits

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Employee Fringe Benefit Changes - Student Loan Repayment - The Consolidated Appropriations Act, 2021 (the “Act”) extended the period during which an employer may pay a portion of a student’s loan under an educational...more

White & Case LLP

Replacing Pay with Equity to Preserve Cash in a COVID Economy

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As pandemic effects linger, companies intent on avoiding layoffs are looking at compensating workers with equity in lieu of cash as part of their pay. In August 2020, the United Kingdom began winding down its Coronavirus...more

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