Employee Benefits Update: Year End 2016

This issue’s topics include:

Using eligibility rules to control plan enrollment

Plan sponsors have more flexibility than they may realize when it comes to setting eligibility rules for 401(k) plan participants. Even though ERISA sets many rules for eligibility, plan sponsors have leeway to meet the demands of the employment market. This article offers some thoughts for plan sponsors to consider when determining plan enrollment.

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Too many investment options may increase litigation risk

Giving plan participants a wide range of investment options is a good thing — but only to a point. That’s one of multiple allegations in recent class action lawsuits filed against several prominent universities. This article reviews recent litigation, and offers a cautionary note for plan sponsors who offer a high number of investment options.

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Where’s Waldo?
Locating missing plan participants

It’s not uncommon for previously active employed plan participants to fall off the radar screen. They include retirees and former employees that move away without informing the plan administrator. Before anyone realizes it, they become “lost” participants. This article sets out the steps to take when dealing with these participants.

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IRS permits high-earner Roth IRA rollover opportunity

As highly compensated employee (HCE) 401(k) plan participants approach retirement, a potentially useful tax-efficient IRA rollover technique may be a valuable savings tool. This brief article reviews IRS rules about how HCEs can allocate both pretax and after-tax employee contribution 401(k) assets between standard and Roth IRAs.

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Compliance alert

This feature lists a few key tax reporting deadlines for December and January.

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As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please feel free to contact me directly.

Want to learn more?

Join our Employee Benefit Plan Resources group on LinkedIn for more frequent updates on recent developments and best practices and discuss related topics with your peers.

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Employee Benefits Update: October/November 2016

This issue’s topics include:

Small employers on notice
Fiduciary focus important for any size employer

One recent lawsuit alleging fiduciary duty violations caught the attention of many in the employee benefits business not because of the nature of the charges, but instead because it involved a small employer. A string of large employers have faced similar charges and ultimately compensated participants. Even though the plaintiffs later withdrew their complaint, this article examines why the filing of this case matters. A sidebar offers several methods of allocating recordkeeping fees equitably among participants.

Damberg et al v. LaMettry’s Collision Inc., 0:16-cv-01335 (Minn. D.C. 2016)

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IRS places high priority on retirement plan internal controls

When IRS examiners check under the hood of many retirement plans, they often find a lack of sufficient internal controls. The consequences can be severe — even if an IRS audit doesn’t turn up any other problems. The worst-case scenario? Theft of plan assets that is financially damaging to participants and your company, and can also lead to plan disqualification. This article highlights the importance of internal controls for both retirement plan sponsors and their service providers.

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Fair Labor Standards Act update
New employee exempt status threshold rules affect retirement plans

Changes to the Fair Labor Standards Act (FLSA) that take effect December 1 could have implications for retirement plans. The changes affect what forms of compensation businesses use to calculate employer contributions to their qualified retirement plans and determine highly compensated employee (HCE) status. This article reviews the new exemption rules and how they affect retirement plans.

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Hybrid pension plan interest credit rule amendment deadline nears

The deadline for hybrid pension sponsors to adopt plan amendments bringing them into compliance with key provisions of final IRS hybrid plan regulations is fast approaching: January 1, 2017 (2019 for collectively bargained plans). This article reviews the deadline for transitional amendments to satisfy the regulations’ market rate-of-return rule.

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Compliance alert

This feature lists a few key tax reporting deadlines for October and November.

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As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please feel free to contact me directly.

Want to learn more?

Join our Employee Benefit Plan Resources group on LinkedIn for more frequent updates on recent developments and best practices and discuss related topics with your peers.

Join the Group

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Tax Update: October 2016

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit and we understand how important timely updates are to our clients. As a member of the McGladrey Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Employment tax and employee benefits: 5 issues for growing companies
A growing workforce means growing tax and employee benefit challenges.
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Are you ready for your business’ succession?
Important owner readiness considerations.
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2017 fixed asset management primer
Assess and improve your fixed asset strategy and implement best practices that can maximize efficiency, accuracy and benefits.
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International tax controversy: New developments and opportunities
Our tax professionals will discuss new IRS developments that affect international tax controversy matters in this webcast.
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Proposed 2704 regulations have significant life insurance implications
Proposed 2704 regulations: Loss of discounts could materially impact liquidity needs and planning with existing policies.
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Frequently asked questions on country-by-country reporting (CbCR)
A guide for multinational corporations regarding country-by-country reporting questions and BEPS.
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First steps to finding the right tax department resource balance
Redesigning your tax department? Assess your current state first. These three questions will help direct you to optimal tax resource management.
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Retailers must be mindful of gift card tax pitfalls
Retailers should assess gift card procedures including an annual review of reporting, sales tax, unclaimed property and more.
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Is your sales force creating nexus around the country?
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Foreign federal contractors must act quickly to avoid 2% excise tax and penalties
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Will your health plan trigger IRS penalties?
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Source: RSM US LLP
Used with permission as a member of the McGladrey Alliance
http://rsmus.com/our-insights/newsletters/tax-digest.html

Disclaimer

As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please contact us directly.

Tax Update: August 2016

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit and we understand how important timely updates are to our clients. As a member of the McGladrey Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

5 myths that keep companies from filing for WOTC
Mistaken ideas about the Work Opportunity Tax Credit (WOTC) keep many employers from realizing tax savings.
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The future of carried interest?
Carried interest is always a hot topic in partnership taxation. Is change coming and, if so, what might it look like?
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Minnesota Supreme Court upholds partial MTC repeal
Minnesota Supreme Court holds the enactment of the MTC did not create a contract prohibiting the state from partially repealing the law.
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What’s the deal with sales and use tax on remote purchases?
Growth in remote purchasing has states seeking ways to collect the sales tax funds they are due, holding both retailers and consumers responsible.
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Tax planning for high net worth individuals immigrating to United States
Understand the U.S. income, gift and estate tax exposures of immigrating to the United States.
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BEPS will mean higher costs and uncertainty for middle-market companies
A 2016 survey commissioned by RSM and conducted by Euromoney Institutional Investor found middle-market companies face major impact from BEPS.
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Research tax credit limitations for partners and S corporation shareholders
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IRS addresses deferred revenue treatment in taxable stock acquisition
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Source: RSM US LLP
Used with permission as a member of the McGladrey Alliance
http://rsmus.com/our-insights/newsletters/tax-digest.html

Disclaimer

As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please contact us directly.

Tax Update: July 2016

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit and we understand how important timely updates are to our clients. As a member of the McGladrey Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Federal

  • Plan sponsors must pay health plan fee by July 31, 2016
  • Grantor’s death can compromise S corporation’s status
  • Potential tax traps for employees who become partners
  • How research tax credits are limited for partners and S corporation shareholders
  • Proposed regulations could affect subchapter S status
  • Look for upcoming ‘hot dog stand’ guidance on corporate spin-offs
  • Controlling shareholder is liable as a transferee for corporate level tax
  • IRS addresses deferred revenue treatment in taxable stock acquisition

International Tax

  • Global survey reveals BEPS middle market impact
  • Multinationals with Indian or Singapore investments should evaluate whether to change investment structures

State and Local Tax

  • Oklahoma eliminates ‘double’ state and local tax deduction

Source: RSM US LLP
Used with permission as a member of the McGladrey Alliance
http://rsmus.com/our-insights/newsletters/tax-digest.html

Disclaimer

As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please contact us directly.

Tax Update: March 2016

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit and we understand how important timely updates are to our clients. As a member of the McGladrey Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Federal

  • New Form 1095-C due to employees by March 31, 2016
  • IRS denies S corporation an ordinary loss on worthless stock
  • Partnership varying interest regulations now effective
  • Tax-related ID theft and tax data security issues continue to plague IRS
  • Flip or flop-a cautionary tale
  • Gain determined separately, not netted, for separately acquired blocks of stock
  • Leasing your office or building? Be mindful of this tax pitfall

International Tax

  • European Union anti-tax avoidance
  • Foreign pensions require withholding certificate to claim FIRPTA exemption

State and Local Tax

  • Delaware to shift to single sales factor apportionment
  • States beginning to respond to federal partnership changes

Source: RSM US LLP
Used with permission as a member of the McGladrey Alliance
http://rsmus.com/our-insights/newsletters/tax-digest.html

Disclaimer

As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please contact us directly.

Employee Benefits Update: February/March 2016

This issue’s topics include:

  • IRS eases pain for correcting certain plan administration errors
  • What are you forgetting? Reviewing commonly overlooked fiduciary duties
  • It may be time to offer annuity options to 401(k) plan participants
  • Shut the door: IRS ends defined benefit plan lump sum payouts

 Employee Benefits Update February March 2016 Click Here to Download

As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please feel free to contact me directly.

Want to learn more?

Join our Employee Benefit Plan Resources group on LinkedIn for more frequent updates on recent developments and best practices and discuss related topics with your peers.

Join the Group

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