In a significant development for employers managing Paid Family and Medical Leave (PFML) programs, the IRS has issued new guidance clarifying the federal income and employment tax treatment of contributions and benefits under state-funded PFML programs. This guidance, detailed in Revenue Ruling 2025-4, addresses key tax implications for both employers and employees, ensuring compliance and
Potential Shifts in Employee Benefits: A Guide for Employers Under Trump
As we prepare for another change in Administration in the White House, it is crucial for employers and plan sponsors to stay informed and prepared. While much of what lies ahead is speculative, understanding these possible changes can help employers navigate the uncharted waters of employee benefits. Following is an overview of potential changes we
Reimagining Benefits For A World Without Noncompetes
The Federal Trade Commission published a proposed rule[1] Jan. 5 that would effectively prohibit noncompete clauses for employees and other workers in all but very limited circumstances.[2]
This article focuses on the impact the proposed rule could have on employee benefit and compensation arrangements, if it becomes effective in its current form.
Golden Parachute
U.S. Supreme Court Overturns Roe and Casey: What This Decision Means for Employers
As many expected based on the draft opinion that was leaked months ago, the U.S. Supreme Court has held the U.S. Constitution does not protect the right to obtain an abortion. Dobbs v. Jackson Women’s Health Organization, No. 19-1392 (June 24, 2022).
Dobbs overturns nearly 50 years of precedent from the Court’s decision in
Group Health Plan Considerations in the Face of (Potentially) Changing Abortion Laws
On May 2, 2022, a draft opinion from the U.S. Supreme Court case Dobbs v. Jackson Women’s Health was leaked to the press, and as a result the Court is expected to overturn Roe v. Wade and Planned Parenthood v. Casey, effectively leaving the issue of abortion rights to the states. Thirteen states currently
SECURE 2.0 – What Employers Need to Know
On March 29, 2022, the House of Representatives passed the Securing a Strong Retirement Act of 2022 (“SECURE 2.0”, HR 2954). The vote was largely supported by both parties (414-5). The Senate will likely act on the bill later this spring. While we expect several changes in the Senate version, it is widely
IRS Answers to Your American Rescue Plan Act COBRA Subsidy Questions
In much-anticipated guidance, the Internal Revenue Service has offered its insight on the implementation of the COBRA temporary premium subsidy provisions of the American Rescue Plan Act of 2021 (ARPA) in Notice 2021-31.
Spanning more than 40 pages, the IRS-answered frequently asked questions (FAQs) finally resolve many issues relating to temporary premium assistance for
New Mandatory Retirement Plan Requirement for Certain New York City Employers
On May 11, 2021, the City Council of New York enacted a local law to establish a retirement savings program for certain employees of private entities.
What are the Details?
The new law creates a mandatory auto-enrollment payroll deduction individual retirement account (“IRA”) program for employees of private sector employers in New York City which
American Rescue Plan Act Extensions, Changes to Select Tax Credit, Compensation Deduction Provisions
The American Rescue Plan Act of 2021 expands upon some popular tax credit provisions and makes other changes to a key tax provision regarding compensation deduction limitations. These changes are summarized below. More
Consolidated Appropriations Act, 2021: PPP and Tax Provisions
The Consolidated Appropriations Act, 2021 (Act) generally provides the annual funding for the federal government and contains several important rules giving further COVID-19 relief. These include, among other things, revisions to the Paycheck Protection Program (PPP), expansion of the employee retention tax credit, and changes to other employer-related tax provisions.
The Act was passed by