FICA Tax Withholding on Non-Qualified Deferred CompensationPrior to January 1, 2016, employers should withhold on any amounts earned by an employee under a non-qualified deferred compensation plan (NQDC), which becomes vested and ascertainable in 2015. In the case of a NQDC arrangements, the FICA tax, comprised of Social Security and Medicare taxes, can apply when NQDC plan amounts are no longer subject to a substantial risk of forfeiture and are ascertainable, meaning that the amount can be calculated accurately. This special FICA timing rule for NQDC results in imposing a FICA tax before plan benefits are paid. … [Read more...] about Employers Need 2015 Year-End Planning to Meet Employee Reporting and Withholding Requirements
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FICA Medicare Tax Increase For tax years beginning after December 31, 2012, the FICA Medicare tax rate will increase by 0.9% for wages over $200,000 ($250,000 for married couples filing jointly). FICA taxes are comprised of Social Security and Medicare taxes, thus this change increases the employee’s portion of the FICA Medicare tax from 1.45% to 2.35% for wages over $200,000 ($250,000 for married couples filing jointly). An employer will be required to collect the employee’s portion of this FICA Medicare tax. … [Read more...] about What Employers Need to Know for 2012 and 2013 Under the Patient Protection and Affordable Care Act
Substantiation of Reimbursable Expenses. When enacting Code Section 139, Congress recognized that it might not be practical to ask employees in a disaster situation to account for emergency expenses. As a result, employees do not have to account for their actual expenses in order to receive qualified disaster relief payments and qualify for the exclusion from income for such payments, provided the payments received by the employee are reasonably commensurate with the expenses he or she incurred. Further, employers need not require employees to provide any evidence or documentation to support a reimbursable expense, unless the expense appears to be unreasonable or unnecessary. However, as a best practice, employers should consider obtaining a self-certification from an employee receiving a qualified disaster relief payment that sets forth the expenses covered by the payment (i.e., temporary lodging, meals, home repairs), and requires the employee to certify that the expense is not … [Read more...] about When Disaster Strikes: IRS Guidance Gives Employers Additional Options for Assisting Employees Hit by Hurricanes Harvey and Irma
COURT OF APPEAL DECISIONThe Court of Appeal, upholding the decision of the Divisional Court, stated that the reach of the EA should be the same as that in relation to unfair dismissal. The Court of Appeal rejected submissions that because these are discrimination claims, the court should look upon the territoriality issue with greater sympathy than if they were simply unfair dismissal claims. There was no suggestion that anything other than Afghan law applied to the Afghani LES and their contracts. They had no physical connection or contact with Great Britain at all; their only connection to Great Britain was that their employer was the UK Government. Their connection to Afghanistan and Afghan employment law was strongest and therefore the EA did not apply to them. … [Read more...] about News, Legislation, Case Law Update: August in UK Employment Law
In terms of which employers will be caught by the new gender pay gap reporting obligations, however we do know that employers in the private and voluntary sector in Great Britain will be caught if they have at least 250 “relevant employees” on a certain date in April 2017 (and each subsequent anniversary of that date). The Government estimates that approximately 7,960 employers with around 11 million employees will be caught by the new reporting obligations. This represents 34% of the total workforce in Great Britain. … [Read more...] about Which Employers Will be Caught by New UK Gender Pay Gap Reporting Obligations?