As most employers are aware, the obligation to report non-qualified deferred compensation (NQDC) that complies with Internal Revenue Code (IRC) Section 409A is currently suspended, but non-compliant NQDC is required to be reported in Box 12 of an employeeās Form W-2. Employers should also be aware of the additional Form W-2 reporting requirements that may apply to NQDC, including equity awards that are considered NQDC, such as deferred restricted stock units: the obligation to report…
On April 21, 2017, the Trump Administration issued Executive Order 13789, which instructed the IRS to review all āsignificant tax regulationsā issued on or after January 1, 2016 to identify as targets for modification, rescission or delayed effectiveness any regulations that (i) impose an undue financial burden on U.S. taxpayers; (ii) add undue complexity to the Federal tax laws; or (iii) exceed the statutory authority of the IRS. Having completed this review, earlier this month,…
The Rise of Total Reward Statements Starting a few years ago, many companies embraced the use of Total Reward Statements (TRS) in which they tried to summarize all of the different compensation items paid to an employee in one statement, ostensibly to make it easier for an employee to see, at a glance, how much money they were actually making.Ā A TRS usually includes base salary, bonus payments, commission payments and, of course, equity awards.…
In a recent blog post, we discussed the tax withholding and reporting complexities that can arise when employees earn equity or deferred compensation while working in more than one state. Therefore, it is timely to report on an effort at the federal level to harmonize threshold tax requirements in multi-state employment scenarios. New 30-Day Rule On June 20, 2017, the āMobile Workforce State Income Tax Simplification Act of 2017ā (H.R. 1393) passed the House of…