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The Internal Revenue Service has increased the standard mileage rate commonly used to reimburse employees for business use of a car to 50.5 cents per mile, up from 48.5 cents in 2007. The new rate will apply to miles driven beginning Jan. 1, 2008. Employers who use the IRS standard mileage rate to reimburse employees […]
Section 403(b) of the Internal Revenue Code is undergoing its most significant changes in decades. The IRS has issued final regulations for retirement plans governed by Section 403(b) and maintained by nonprofit and tax-exempt organizations and public schools for their employees’ benefit. The plans may be funded through annuity contracts issued by an insurance company, […]
Internal Revenue Code Section 409A regulates deferred compensation plans and other arrangements, including severance plans, annual bonus payments, long-term incentive arrangements, stay bonuses, and settlement agreements upon termination. Section 409A rules govern compensation that was deferred or became vested after Jan. 1, 2005. Because employers have faced many difficulties trying to comply with these rules, […]
A new law that goes into effect on Jan. 1, 2008, requires employers to provide a new notice to employees, along with annual wage summaries (such as W-2 or 1099 forms). The measure, A.B. 650, requires all California employers to give all employees written notice of employees’ possible right to take an Earned Income Tax […]
In an important new ruling, the California Supreme Court has approved an employer’s practice of paying increased salaries and commissions to cover employees’ mileage expenses. At issue was Labor Code Section 2802, which requires employers to indemnify employees for necessary expenditures they incur as a result of the job. The employees here had argued that […]
The U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) has published a final rule clarifying the penalty that may be imposed on a plan administrator for failing to provide a written notice to participants and beneficiaries of their rights to diversify the portions of plan accounts that are invested in the employer’s publicly traded […]
The Treasury Department and the IRS have issued final rules regarding section 409A nonqualified deferred compensation plans and arrangements. The new regulations provide extensive information on how employers can identify nonqualified deferred compensation plans and arrangements subject to section 409A, along with rules to help employers and employees comply. Plans and arrangements affected by the […]