Paying Taxes on a Paid Time Off Cash Out

Employees look forward to their time off when they are working 8-12 hours/day in this tough economy. Paid time off (PTO) plans vary on when the time off may be paid or used. Some employers have a use-it-or-lose-it plan that let employees accumulate days, months or even years of PTO, but if they do not […]

Taxing E-Tailers

E-tailers are confronting challenges from aggressive taxing states, such as New York, Rhode Island, Arkansas, California, Connecticut, Illinois, and North Carolina. States are pursuing remote vendors to generate tax revenue through legislation, audit, and lawsuits. U.S. Supreme Court cases have required direct or mail order businesses to have a physical presence with a state before […]

Form W-2 Costs of Employer Group Health Coverage

The Patient Protection and Affordable Care Act of 2010 (PPACA) requires employers to report the aggregate cost of “applicable employer sponsored group health care coverage” on employees’ Forms W-2 in Box 12 using code DD. On October 12, 2010, the Internal Revenue Service (IRS) issued Notice 2010-69 to waive the reporting requirements for Forms W-2 […]

Determination Letter Program

For employers adopting a retirement plan, such as a 401(k) plan, the employer has these plan options: • Individually designed plan, • Master and Prototype plan, • Volume Submitter plan. To ensure that the plan document complies with the Internal Revenue Code, the plan sponsor may request the IRS review the document and issue a […]

Incentive Stock Options and Employee Stock Purchase Rights

Any employer who passed January 31, 2012 without delivering information statements to their employees, and then to the IRS, that report 2011 exercises of incentive stock options (“ISOs”) and transfers of stock under employee stock purchase plans (“ESPPs”) may be in for some trouble for not following Internal Revenue Code Section 6039. Failure to distribute […]