The U.S. Department of Labor (DOL) is advancing a proposal that would enable 401(k) plan sponsors to automatically transfer account balances up to $5,000 of former participants who have left the company. The amounts would be transferred to the 401(k) plan of an employee’s new employer. Assets transferred using this “auto portability” approach would make an intermediate pit stop in an IRA before landing in the former employee’s new employer’s plan. Here’s what you need to know. Read more
Own a CFC? Get Ready to be GILTI…
There have been many changes in the last 12 months for US taxation of foreign entities. US shareholders of controlled foreign corporations (CFCs) have already felt the pinch of transition tax for 2017. Unfortunately, the pinch of foreign taxation changes is going to continue in 2018 and onwards thanks in part to GILTI. As the acronyms connotation implies, it is a less than popular tax change. Let us look together at some significant points related to the ominous GILTI: Read more
Lock in Home Office Deductions
The tax law permits you to deduct home office expenses if you “regularly and exclusively” use an area of your home as either:
- Your principal place of business.
- A place to meet or deal with clients, customers or patients in the normal course of business.
Tax Court Sets Boundaries on Commuting Deductions
Commuting between your residence and place of business are generally non-deductable, but there are a few exceptions.
Although you usually can’t deduct typical “commuting” expenses from home, you may qualify for a special exception if you’re away working on temporary assignments. But the IRS and the U.S. Tax Court won’t allow borderline deductions, as evidenced by one case involving a construction worker.
We’ll explain what happened in the case, but first, here is some background information. Read more
IRS Ups the Ante on Retirement Contributions
The IRS recently published annual cost-of-living adjustments for 401(k), IRA, and other qualified retirement accounts.
Every year, the IRS releases cost-of-living adjustments to qualified retirement plan amounts. For the tax year 2019, many of the limits applicable to pensions and other retirement plans will increase. But some will remain unchanged from 2018. Read more
Free Credit Freezes and Fraud Alerts Are Here!
A new law no longer allows credit reporting agencies to charge you a fee to “freeze” your account.
The Federal Trade Commission (FTC) just issued some FAQs explaining a new consumer protection law known as the Economic Growth, Regulatory Relief and Consumer Protection Act. It was signed by President Trump in May and took effect on September 21, 2018. Read more
Tax Reform’s 199A Redefines “Consulting” For Government Contractors
Government contractors who are listed as ‘consultants’ may want to reconsider their terminology under section 199A of the new tax reform.
By Meredith Pilaro and Jeff Bilsky
Government contractors provide many different types of services across many different industries, such as IT, R&D, operations and professional services. In the past, many of these contractors may have used the term “consultant” or “consulting” to describe the wide range of services they provide. Yet this 2018 tax season, it may be time for contractors to revisit this terminology, particularly if they are structured as a flow‑through entity for tax purposes (i.e., an S corporation, a partnership, or an LLC taxed as a partnership). Read more
International Tax Technical Update- October
TREASURY ISSUES PROPOSED REGULATIONS FOR GLOBAL INTANGIBLE LOW-TAXED INCOME, SECTION 951A
Summary
On September 13, Department of the Treasury and the Internal Revenue Service (collectively, Treasury) issued proposed regulations (REG-104390-18, hereinafter, the Proposed Regulations) implementing Section 951A. Read more
Consider Telemedicine and Make Sure Employees Use It
With outcomes that benefit employees and employers, telemedicine holds the promise of improving health care efficiency and quality as well as lowering overall cost.
Telemedicine continues to change the way that medical professionals and patients interact.
In a survey by the Mercer consulting firm, nearly three-quarters of employers with at least 500 workers said they make telemedicine services available. Yet employers with programs in place reported that only 7% of eligible employees used telemedicine at least once. And despite its wide availability, many employees who have access to telemedicine aren’t even aware that it’s an option for them. Read more
Gen Z May Change How You Manage Employees
Each generation has their own perceived characteristics. What behaviors are already being attributed to Generation Z as they enter the workforce?
Is your workplace ready for Generation Z? Lately, many demographers and generation-focused marketing experts have been vocal about what they observe in Gen Z, the newest additions to the job applicant pool. Read more