Tag: IRS
Retirement Plans: Major Changes to the 403(b) Rules; How to Prepare
Section 403(b) of the Internal Revenue Code is undergoing its most significant changes in decades. The IRS has issued final regulations for retirement plans governed by Section 403(b) and maintained by nonprofit and tax-exempt organizations and public schools for their employees’ benefit. The plans may be funded through annuity contracts issued by an insurance company, […]
Deferred Compensation Plans: Take Time Now to Ensure Compliance with Section 409A
Internal Revenue Code Section 409A regulates deferred compensation plans and other arrangements, including severance plans, annual bonus payments, long-term incentive arrangements, stay bonuses, and settlement agreements upon termination. Section 409A rules govern compensation that was deferred or became vested after Jan. 1, 2005. Because employers have faced many difficulties trying to comply with these rules, […]
Taxes: New Law Requires Earned Income Tax Credit Notice to Employees
A new law that goes into effect on Jan. 1, 2008, requires employers to provide a new notice to employees, along with annual wage summaries (such as W-2 or 1099 forms). The measure, A.B. 650, requires all California employers to give all employees written notice of employees’ possible right to take an Earned Income Tax […]
Wage and Hour: California High Court Backs Employer on Expense Reimbursement
In an important new ruling, the California Supreme Court has approved an employer’s practice of paying increased salaries and commissions to cover employees’ mileage expenses. At issue was Labor Code Section 2802, which requires employers to indemnify employees for necessary expenditures they incur as a result of the job. The employees here had argued that […]
Retirement Plans: New Rule Regarding Stock Diversification Notice Penalties
The U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) has published a final rule clarifying the penalty that may be imposed on a plan administrator for failing to provide a written notice to participants and beneficiaries of their rights to diversify the portions of plan accounts that are invested in the employer’s publicly traded […]
Retirement and Pension Plans: IRS Issues Final 409A Rules
The Treasury Department and the IRS have issued final rules regarding section 409A nonqualified deferred compensation plans and arrangements. The new regulations provide extensive information on how employers can identify nonqualified deferred compensation plans and arrangements subject to section 409A, along with rules to help employers and employees comply. Plans and arrangements affected by the […]
From the Experts: The Uncertainty and Costs of the DLSE’s Proposed Reimbursement Rules
IRS Extends ATIP Program Deadline
Reimbursements: Can You Give Us Some Help on Employee Expense Reimbursements?
We’re trying to revise our travel reimbursement policies, and we need some help. We’re trying to simplify. Can we pay a per diem? Meanwhile, we’d rather just pay employees a set amount more in salary and not hassle at all with receipts and vouchers for every little thing. I understand that there’s a case now […]