Many businesses choose to set up healthcare to include a health savings account (HSA) for each participating employee. Employees and businesses can then make tax-advantaged contributions to this account. For the most part, once these contributions are made, an employer cannot reclaim the contributions, even if it was made incorrectly. However, the IRS has set apart some situations where corrections to HSA Read More

Companies that handle personal health information (PHI) that are subject to HIPAA rules often enter into business associate agreements. This includes companies handling electronic records for hospitals, transferring information to insurance companies, storing HIPAA data, and much more. All covered entities, including health plans, hospitals, and insurance companies, under HIPAA must have business associate agreements Read More

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