The Tax Cuts and Jobs Act (“TCJA”) has created many changes for individuals and employers, including the way that employers calculate wage withholding for their employees. Employers need to be aware of the new methodologies for calculating individual income tax withholding, and need to prepare for the use of new forms. To that end, the …
SPD v. Plan Document: Who Wins?
Conflicts between a benefit plan Summary Plan Description and a plan document are an ever-present concern for plan sponsors. An aggrieved participant who relies on SPD language will often pursue a claim for benefits even though he/she is not entitled to the benefit under the plain terms of the plan document. This problem is illustrated …
Tips on Improving Your Hiring Process
Every employer wants to hire qualified, motivated employees. Yet, the hiring process at many companies tends to be inconsistent and often results in engaging employees that fail to excel, or to even perform within acceptable parameters. Even worse, poor practices in the hiring process can result in costly litigation from discrimination claims, not only from …
Employers Always Need to Thoroughly Explore the Smallest of Reasonable Accommodations for a Disability
A recent decision from the U.S. Court of Appeals for the Sixth Circuit provides a strong lesson in the need for employers to fully explore an employee’s request for a reasonable accommodation and to when necessary be flexible in applying certain workplace policies. In the matter of EEOC v. Dolgencorp, LLD dba Dollar General Corp., …
Increasing I-9 Audits and the Risks of Turning a Blind Eye
On July 24, 2018, Homeland Security Investigations (HSI) announced that it had issued more than 5,200 I-9 audit Notices of Inspection (NOIs) nationwide since January of 2018 as part of a two-phase operation. The second phase of the operation was conducted from July 16 to July 20, during which HSI agents served 2,738 NOIs and …
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New USCIS ‘Deportation’ Policy May Impact Legal Foreign Workers
On July 5, 2018, U.S. Citizenship and Immigration Services (USCIS) published new guidance dated June 28, 2018 regarding when officers should issue a “Notice to Appear” (NTA). An NTA is essentially a notification to a foreign national in the United States (U.S.) that the government has determined that he or she is “removable” from the …
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IRS Permits the Use of Forfeitures for QNECs, QMACs and Safe Harbor Contributions
Many employers had long assumed that they could fund contributions to qualified plans made to avoid violating nondiscrimination rules from employee forfeiture accounts. Recently, the IRS finalized helpful new guidance to employers clarifying that forfeitures can be used fund these contributions. QNECs, QMACs and Safe Harbor Contributions Tax-qualified defined contribution plans (e.g., 401(k) and profit …
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Time for Non-Profits to Update Their 403(b) Retirement Plans
Non-profit entities, including schools and universities, that sponsor 403(b) retirement plans should begin the process of restating their plans to comply with current law. This is the first restatement cycle since the December 31, 2009 deadline for sponsors of 403(b) plans to adopt written plan documents. A 403(b) plan is similar to a 401(k) plan …
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Signs Point to Yes: The IRS Advisory Committee Drops Hints That the Qualified Retirement Plan Determination Letter Program Might Return in Some Form
For many years, plan sponsors could regularly get a determination letter from the IRS to ensure that their individually-designed qualified retirement plan met all of the requirements for favorable tax treatment. However, in 2017 the IRS ended that practice. Since that time, plan sponsors have had no mechanism by which to confirm that their plans …
Qualified Transportation Fringe Benefits No Longer Deductible for Employers
In the past, employers have been able to deduct expenses related to “qualified transportation fringe benefits” (“QTFBs”) such as qualified parking, transit passes, transportation in commuter highway vehicles, or qualified bicycle commuting reimbursements. Pub. L. No. 115-97, commonly referred to as the “2017 Tax Act” or the “Tax Cuts and Jobs Act” (“TCJA”), however, has …
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