Posts Categorized: Tax Issues

House Tax Bill Would Terminate Popular Welfare and Fringe Benefit Plans

in Tax Issues, Welfare Benefits, Wellness Programs

The Senate is back in session this week.  One of the most important items is the vote on the Senate’s version of 2017 tax reform.  As background, the House has already passed its 2017 tax reform bill.  The Senate’s version was approved by the Senate Finance Committee prior to Thanksgiving Break.  Now, it’s up to the full Senate to pass its tax reform bill, and if it does, then both the House and the Senate versions will be taken up by a joint House/Senate committee to craft a compromise bill that both the House and the Senate will vote on… Continue Reading

Tax Reform Contains Drastic Welfare Plan Changes

in Tax Issues, Welfare Benefits

As you may have heard, the House and Senate are currently considering separate tax reform bills.  If these separate bills are approved by the House and Senate, they will then go to a conference committee, whereby a single, unified bill will be drafted, and the House and Senate will vote again to approve the unified bill. The current version of the House bill, which was approved today on a vote of 227 to 205, contains drastic welfare plan changes, including the elimination of dependent care reimbursement plans, and changes to the taxation of tuition reimbursement plans, adoption reimbursement plans, and… Continue Reading

Senate Version of Tax Reform Proposes Compensation and Retirement Plan Changes

in Retirement Plans, Section 409A, Tax Issues

By:  Mark Stember and Todd Castleton On November 10, 2017, the Senate released a document entitled “Description of the Chairman’s Mark of the ‘Tax Cuts and Jobs Act’” prepared by the Joint Committee on Tax summarizing the proposals expected to appear in the Senate tax reform bill scheduled for mark up today, November 13, 2017.  The description provides background and summaries of the proposed tax code changes expected to appear in the legislation, although the text of the bill has not been released as of Monday morning. Compensation Issues The description reflects that both the Code Section 162(m) change and… Continue Reading

House Ways and Means Committee Says, “Never Mind” to Repeal and Replace of Code Section 409A

in Executive Compensation, Section 409A, Tax Issues

By: Todd Castleton One week ago the Republicans’ Tax Bill H.R. 1, the “Tax Relief and Jobs Act,” was released. Section 3801 of that bill proposed to significantly curtail deferred compensation arrangements by replacing Internal Revenue Code section 409A with section 409B for all services performed on or after January 1, 2018. It would have also required all deferred compensation deferred before 2018 under current section 409A to be included in income no later than 2025. On November 9, 2017, House Ways and Means Committee Chairman Kevin Brady released an amendment striking these proposed changes. According to the summary released… Continue Reading