The 21% excise tax leveraged on excess compensation as outlined in the Tax Cuts and Jobs Act (TCJA) is equal to the corporate tax rate. In an effort to provide more guidance to the applicable tax-exempt organizations (ATEOs) that are subject to this tax rate, the IRS issued guidance outlining the meaning of excess compensation and how it should be calculated for tax purposes. Section 4960 was added to the Internal Read More

Thanks to a recent ruling by the Supreme Court, employers can now be confident that arbitration agreements and class action waivers are enforceable and do not violate the National Labor Relations Act. This debate started in 2011 with AT&T Mobility Servs. v. Concepcion, which held that arbitration provisions were enforceable when included in consumer contracts. It further held that these agreements barred Read More

Regulatory updates continue as the IRS recently issued interim guidance on the Tax Cuts and Jobs Act (TCJA). Specifically, new regulations impose a 21% excise tax on “excess” executive compensation at applicable tax-exempt organizations (ATEOs). This guidance is designed to provide companies with a reasonable interpretation of the statute until such time as the IRS can issue final regulations. This excise tax applies Read More

A growing number of lawsuits have targeted 401(k) and pension plans. These lawsuits are driven by a number of factors such as the 2008 financial crisis, a recent decision by the U.S. Supreme Court, some larger cases on the topic settling for significant sums, and an increased focus on lower management fees. As plaintiffs’ attorneys noticed the reductions in plan fees and the successful litigation on the part of large Read More

Employee benefit plans typically gather, use, and maintain confidential data about plan participants. Employers, plan sponsors, and fiduciaries must use cybersecurity best practices to protect this information. In this article, we will explore some cybersecurity techniques applicable to employee benefit plans. At this time, the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) provides no clear Read More

Noncompliance with government regulations can occur simply by lack of understanding the finer points of those regulations. For example, it’s simply impossible for a quick read of ERISA to give you all the information you need to avoid HIPAA noncompliance penalties. In this article, we will examine how consulting with ERISA counsel can give you the in-depth information you need.   Top HIPAA Noncompliance Read More

In recent years, we have seen challenges to the exemption for church-sponsored pension plans contained in the Employee Retirement Income Security Act of 1974 (ERISA). A U.S. Supreme Court decision in 2017 (Advocate Health Care Network et al. v. Stapleton et al.) seemed to settle the argument that plans offered by church-affiliated hospitals still qualified for the exemption. However, it now appears that Read More