Compensation and Benefits
Let the Negotiations Begin
Compensation of the top five management-level employees is presently benchmarked at $693,951 and compensation for all contractor employees, including those covered by the benchmark amount, is governed by DCAA’s assessment of reasonableness. Proposals of the President, made in September 2011, limit all allowable compensation for all employees to a maximum of $200,000 to match the most senior federal employee’s salary. On December 1st, the Senate voted 93-7 as a part of the 2012 Defense authorization bill to cap the amount that defense contractors can be reimbursed for ANY employee’s salary at $400,000. The House passed version of the Defense bill. Read More.
Salary Reimbursement Caps – An Attempt to Balance the Budget
Last month, various members of Congress picked up on the September recommendation of President Obama to restrict the amount of contractor employee wages that can be passed on to the federal government for reimbursement. Compensation of the top five management-level employees is already benchmarked at $693,951 and compensation for all other contractor employees is governed by DCAA’s assessment of reasonableness. Current proposals would limit all compensation reimbursement for all employees to a maximum of $200,000 to match the most senior federal employee’s salary. Since contractors may not be able to recover all of their employees’ salaries, the differential may come. Read More.
New Employer Reporting Requirements for ISOs and ESPPs
New Reporting Requirements for Forms 3921 and 3922 Section 6039 of the IRC requires companies that issue stock options are now required to furnish their employees (including former employees) with information statements with regard to (i) the exercise of an incentive stock option (“ISO”) and (ii) the transfer of shares granted under certain employee stock purchase plans (“ESPP”) during calendar year 2010. The IRS recently issued final regulations under Code Section 6039 addressing the employer return and employee information statement requirements for transfers of stock pursuant to the exercise of ISOs and through ESPPs and clarifying certain reporting requirements. Reporting. Read More.
Are You Eligible for the New Small Employer Health Insurance Tax Credit?
Your business may be eligible for the new Small Business Health Care Tax Credit . The credit, which was part of The Patient Protection and Affordable Care Act , is retroactive to tax years beginning in 2010 and is, therefore, available for the full calendar year of 2010 (for calendar year taxpayers). Designed to encourage eligible small employers to offer health insurance coverage to their employees, the non-refundable credit is available to small employers that pay at least half the cost of single coverage for their employees. The credit is specifically targeted to help small businesses and tax-exempt organizations that primarily employ low and moderate income workers. The maximum credit amount is 35. Read More.
Breaking Down the Health Care Reform Law’s Impact on Small Businesses
The recent enactment of the Patient Protection and Affordable Care Act of 2010, in combination with the Health Care and Education Tax Credits Reconciliation Act of 2010 (collectively known as the “Health Care Act” or the “Act”), will significantly change the nation’s health care landscape and impact small businesses in a number of ways. Given the scope of this landmark legislation, this short summary is by no means a comprehensive review of the new law. As your tax professionals at CB&H continue to study the legislation, we will continue to keep you informed and up-to-date regarding how the Health Care Act will affect you and your business. The Health Care Act requires all individuals not covered by Medicaid or Medicare to obtain minimum essential coverage or pay a penalty (unless they are exempt from the individual responsibility mandate).. Read More.
Breaking Down the Health Care Reform Law’s Impact on Employers
The recent enactment of the Patient Protection and Affordable Care Act of 2010, in combination with the Health Care and Education Tax Credits Reconciliation Act of 2010 (collectively known as the “Health Care Act” or the “Act”) , significantly changes the nation’s health care landscape, and many of these changes will be carried out through substantial additions and alterations to the U.S. tax code . Given the scope of this landmark legislation, this short summary is by no means a comprehensive review of the new law. As your tax professionals at CB&H continue to study the legislation, we will continue to keep you informed and up-to-date regarding how the Health Care Act will affect you and your business.