Mary worked for IT, Inc. at its headquarters in Maryland. Her husband moved to New Jersey for his work and Mary moved with him. Mary continued to work for IT, Inc., writing computer code from her home in New Jersey and uploading her work to her co-workers in Maryland via the Internet. IT, Inc. withheld
Understanding Employee Benefits and key developments in the employee benefits field and items of interest to our clients. MORE
Stinson LLP
What if DOMA Is Declared Unconstitutional?
By Stinson LLP on
Most employers are aware that the federal Defense of Marriage Act (DOMA) defines marriage as the union of one man and one woman for federal law purposes, including federal tax and benefits law. For benefits governed by ERISA, this means that state laws that recognize same sex marriages are preempted. Although for some benefits (e.g.,…
Can You Decline Medicare if You Take Social Security?
By Stinson LLP on
The US Court of Appeals for the District of Columbia Circuit recently said no. A group of seniors, including former US House Majority Leader Dick Armey, had sued the federal government to be allowed to accept Social Security payments, but decline Medicare coverage. They preferred to keep their private coverage to being covered by…
Unreasonably Low Compensation and FICA Taxes
By Stinson LLP on
In many cases where the IRS claims that compensation is not “reasonable,” the focus is on whether the compensation is too high to be deductible by the employer. The arguments are often reversed in the S corporation context. Because there is only one level of tax in the S Corporation, some owners try to minimize…
Thoughts on the Longevity Annuity Guidance Issued by the IRS
By Stinson LLP on
I am of an age to be contemplating retirement (and I work in the field so that age may come sooner for me than for others). My parents are both in their late 80s; I had a grandmother who died a few weeks shy of her 100th birthday. So I have a personal interest in …
A Quirk in the Effective Date for the New Summary of Benefits and Coverage
By Stinson LLP on
This is one of several posts we intend to make on the recently issued guidance on the Summary of Benefits and Coverage (SBC). This is the four (double sided, so actually eight) page uniform summary that will be required for group health plans, as well as for individual insurance policies. It is intended to provide …
Section 401(k) Compliance Check Questionnaire — Interim Report Issued
By Stinson LLP on
Those of you interested in data regarding the prevalence of certain features in 401(k) plans may find of interest the Interim Report on the Section 401(k) Compliance Check Questionnaire. This is the first report of the IRS on the extensive questionnaire that it sent to sponsors of 401(k) plans a year or so ago. …
Deficit Reduction, Tax Expenditures and Retirement Plans
By Stinson LLP on
There has been a lot of talk in Washington about deficit reduction, tax expenditures and tax reform. One of the largest identified tax expenditures is the exclusion for employer provided retirement plans, both defined contribution and defined benefit. I was at a seminar recently where the reported number for 2011 was $112 billion for fiscal…
A Most Unusual QDRO Decision
By Stinson LLP on
Most qualified domestic relations order (QDRO) cases are fights that affect the formerly married spouses and the plan sponsor or plan administrator. They do not typically affect the other participants in the plan. The case of Milgram v. Orthopedic Associates Defined Contribution Pension Plan (No. 10-862-cv. 2d Cir. Nov. 29, 2011) is different. In that …
Payroll Tax Holiday Extension Contains Recapture Provision
By Stinson LLP on
Most of us have heard that Congress finally extended the 2% payroll tax holiday for two months, namely, through February 29, 2012. In order to prevent highly paid employees from front loading their wages to take advantage of the payroll tax holiday for the entire $110,100 social security wage base, the legislation includes a recapture…