Tag: revenue

December 31, 2012 Deadline Looms Under Tax Code for Fixing Severance Agreements with Releases

  Employers have until the end of the year to take advantage of relief from penalties under section 409A of the Internal Revenue Code for agreements that require employees to sign releases before severance benefits are paid. Section 409A was enacted in 2004 to regulate deferred compensation.  Internal Revenue Service ("IRS") regulations made clear that it … Continue Reading

Federal Government to Crack Down on Misclassified “Independent Contractors?”

It’s always risky to misclassify someone who should be an employee as an "independent contractor," but President Obama’s 2011 budget proposal will increase the risks for employers.  According to this budget summary from the U.S. Department of Labor, the misclassification of employees as contractors is estimated to cost the Treasury Department over $7 billion in lost payroll … Continue Reading

9th Circuit: Independent Contractor Can Assert Disability Claim Under Rehabilitation Act

The Ninth Circuit Court of Appeals ruled recently that an independent contractor may assert a disability claim against an employer under the Rehabilitation Act.  Click the link to read the opinion on Fleming v. Yuma Regional Medical Center.  The Rehabilitation Act prohibits discrimination on the basis of disability in programs conducted by Federal agencies, in programs receiving … Continue Reading

IRS, DOL Publish New Info on COBRA Subsidy

Today the Department of Labor expanded its FAQs on the COBRA subsidies included in the American Recovery and Reinvestment Act of 2009 (ARRA).  Click here to read the DOL’s new COBRA FAQs.  Wondering what the tax implications of the subsidy are, or whether the person asking for the subisidy is truly eligible?  Click here to read … Continue Reading

New Federal Legislation Would Penalize Employers’ Use of “Independent Contractors”

The U.S. Congress is currently considering legislation that would impose significant penalties on employers who improperly classify employees as "independent contractors" to avoid paying for benefits.  The Employee Misclassification Prevention Act (S. 3648) was introduced in the Senate on September 29, and is sponsored by Senators Edward M. Kennedy (D-Mass.), Barack Obama (D-Ill.) and John Kerry (D-Mass.).   … Continue Reading
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