Guard Against Age-Bias Suits When Downsizing
While a bad economy may be one of the biggest reasons companies downsize, there are other reasons, including mergers and acquisitions, changes in management, and outsourcing. Problems can arise, however, if laid-off employees believe they are victims of discrimination. Employees who have been with the company for a long time may feel they are victims under…
Change in Allowable Airfare: What’s the Impact?
Documentation can be challenging. A final rule was published in December of 2009 that revised the FAR cost principle on Travel Costs (FAR 31.205-46). The revision replaced the language “lowest customary standard, coach, or equivalent airfare” with “lowest priced airfare available to the contractor.” There has been much discussion as to whether the revision places additional…
Negotiate the Terms of a D&O Policy
A not-for-profit organization needs insurance to protect its directors and officers from personal liability in the event of a lawsuit. Don’t fall into the trap of thinking this coverage isn’t necessary. Some states have “safe harbor” statutes that are supposed to protect directors and officers of not-for-profit organizations from lawsuits. However, these statutes are not a substitute…
Voluntary Benefits Proving Increasingly Popular With Employees
Voluntary benefits are benefits that are offered to workers and their families on a purely opt-in basis. In many cases, they represent little or no additional cost to the employer, but the employer nevertheless is able to show a substantially broader list of benefits in its value proposition to employees. For example, millions of workers own…
Tax Law Allows Employees to Defer Income from Equity-Based Pay
Equity-based compensation can be a great way to reward and retain valued employees, especially for companies with limited cash on hand. And the Tax Cuts and Jobs Act (TCJA) makes it even more advantageous by offering a new tax-favored alternative to employees who receive these awards. Under Internal Revenue Code Section 83(i), eligible employees can elect…
Claiming the New Employer Tax Credit for Family and Medical Leave
The Tax Cuts and Jobs Act (TCJA) establishes a new federal income tax credit for employers that provide qualifying paid family and medical leave benefits to their employees. This credit is only available for two employer tax years — those beginning between January 1, 2018 and December 31, 2019 — unless Congress extends the deal. Here…
Create an Accountable Plan to Reimburse Employees for Business Expenses
Did you know that the Tax Cuts and Jobs Act (TCJA) eliminated itemized deductions for employees who incur unreimbursed expenses for company business for 2018 through 2025? Fortunately, you can set up a so-called “accountable plan” to minimize the adverse effects of this TCJA provision. Here’s how the accountable plan deal works. Playing by a New Set…
Understanding Marginal Income Tax Brackets
By any measure, the United States tax code is huge. At the end of 2014, Commerce Clearing House’s Standard Federal Tax Reporter was up to 74,608 pages.1 And each Monday, the Internal Revenue Service (IRS) publishes a 20 to 50-page bulletin about various aspects of the tax code.2 Fortunately, it’s not necessary to wade through these…
Tips to Prevent the Number One Cause of Marital Rift
One survey found financial matters is “the most common source of discord among American couples.” 1 Further, the survey concluded, arguments over money predominantly involve a differing opinion of “needs” versus “wants,” unexpected expenses and insufficient savings. Fortunately, couples may be able to head off many of the problems in a marriage that money can cause. Ten Tips…
Tax Reform: Which Changes Are Temporary vs. Permanent?
The Tax Cuts and Jobs Act (TCJA) includes a bevy of important tax changes for individuals and businesses. However, it’s sometimes hard to keep track of which changes are permanent and which are scheduled to expire at the end of 2025 — unless Congress extends them. Here’s a scorecard to help you keep track of the…