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The DOL Updates the QPAM Exemption from Prohibited Transaction Restrictions under ERISA (US)

ERISA and the Internal Revenue Code broadly prohibit transactions between employee benefit plans or Individual Retirement Accounts and certain “parties in interest” or “disqualified persons”. However, certain transactions are exempted from such prohibition. One such exemption applies to transactions involving independent qualified professional asset managers, which includes banks, savings and loan associations, insurance companies and … Continue Reading

American Rescue Plan Tax Credits for Employers Who Voluntarily Provide Paid Sick Leave and Paid Family and Medical Leave

On March 11, 2021, President Biden signed into law the American Rescue Plan Act of 2021 (the “Rescue Plan”).[1] This post reviews Section 9641 of the Rescue Plan, which makes available tax credits to certain employers who voluntarily provide paid time sick leave and family and medical act leave to employees for absences occasioned by … Continue Reading

ARPA Expands Section 162(m) Covered Employee Group

The American Rescue Plan Act of 2021 (“ARPA”)[1] makes a small but significant change for publicly held corporations subject to the compensation deduction limitations under Internal Revenue Code Section 162(m). In general, Code Section 162(m) limits deductions for compensation in excess of $1 million for “covered employees”.… Continue Reading

Qualified Disaster Tax Relief – Retirement Plans and Employee Retention Credits

Besides the COVID-19 pandemic, 2020 has also had its share of other disasters, including hurricanes, floods and fires. The Consolidated Appropriations Act, 2021 (the “CAA”) has provisions that are designed to provide tax relief for individuals and employers who have been adversely affected by one of the numerous federally declared “Qualified Disasters”. These provisions of … Continue Reading

Stimulus Bill Extends the Availability of Employee Retention Credits

The Consolidated Appropriations Act, 2021 (the “CAA”) extends through June 30, 2021, the Employee Retention Credit provisions of Section 2301 of the CARES Act. It also favorably modifies the rules for claiming the Employee Retention Credits. These changes are generally effective as of January 1, 2021. These provisions of the CAA are found in Sections … Continue Reading

IRS Guidance on the Payroll Tax Executive Order (US)

On August 8, 2020, President Trump issued an Executive Order titled “Memorandum on Deferring Payroll Tax Obligations in Light of the Ongoing COVID-19 Disaster” (the “Order”). The Order directs the Secretary of the Treasury to permit deferral of employee Old Age, Survivors and Disability Insurance (“OASDI”) taxes for payroll dates on and after September 1, … Continue Reading
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