Contributions to individual retirement accounts (IRAs) for a given year are due by the tax return filing deadline for that year, excluding extensions. For most IRA owners, the deadline for making their 2018 IRA contributions is Monday, April 15, 2019. However, for IRA owners who live in Maine or Massachusetts, the deadline is Wednesday, April 17, 2019.
Internal Revenue Service Notice 2019-09 gives tax-exempt organizations interim guidance on how to identify covered employees, calculate remuneration, and allocate excise tax under Section 4960. Please see our recent LawFlash on this interim guidance, and reach out to the LawFlash authors or your Morgan Lewis contacts if you have additional questions.
In the wake of the JSC’s demise, Rep. Richard Neal (D-Massachusetts) and Rep. Bobby Scott (D-Virginia) have reintroduced the so-called “Butch Lewis” Act. Titled “The Rehabilitation for Multiemployer Pensions Act,” the legislation would establish a federal loan program for critical and declining (“red zone”) multiemployer pension plans administered through a newly-created federal agency, the Pension Rehabilitation Administration (PRA).
Join Morgan Lewis this month for this program on employee benefits and executive compensation:
- Morgan Lewis M&A Academy: How Labor, Employment, and Benefits Specialists Can Best Add Value to Your Deal | February 5 | Webinar presented by Michael Schlemmer, Patrick Rehfield, and Peter Mee
Many in the multiemployer pension plan community expected significant developments in 2018 in the ongoing effort to address the multiemployer pension plan solvency crisis. There were higher than usual expectations when the Joint Select Committee on Solvency of Multiemployer Pension Plans (JSC) was formed in early 2018 and tasked with developing legislative solutions to improve the solvency of multiemployer pension plans and the Pension Benefit Guaranty Corporation (PBGC). Unfortunately, after a year-long effort during which several ideas were discussed, the JSC failed to agree on any formal proposal. In the wake of the JSC’s demise, the so-called “Butch Lewis” Act has been reintroduced, which is addressed in Part 2 of this series.
The New York City Council has approved an amendment to the Administrative Code of the City of New York (Int. 0863-2018) that prohibits employment discrimination and harassment based on an individual’s reproductive health choices, which goes into effect on May 20, 2019. Please see our recent LawFlash about this amendment, and reach out to the LawFlash authors or your Morgan Lewis contacts if you have additional questions.
A recent case provides a reminder for plan administrators of the importance of complying with Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) notice obligations and a good excuse to review health plan COBRA procedures.
In Morehouse v. Steak N Shake, Inc., a former employee brought a suit against her former employer after a workplace injury ultimately led to her losing her employer group health plan coverage. Before her injury, the plaintiff paid for her plan coverage by biweekly payroll deductions. Once injured, the plaintiff went on Family and Medical Leave Act (FMLA) leave and started workers’ compensation benefits. She was not provided a COBRA notice when she began leave. Instead, she continued to be covered under the plan and premiums were deducted from her workers’ compensation benefits. Once her workers’ compensation benefits ended, she was unable to pay her premiums and her plan health coverage was cancelled. She was then terminated from employment following the expiration of the FMLA period. After her plan coverage ended, she purchased health insurance to help pay for surgery to address her injury, but still had more than $30,000 in out-of-pocket costs.
Join Morgan Lewis for the 2019 Global Public Company Academy, launching on January 16. This 18-part webinar series offers advice to public companies and companies intending to go public on topics such as capital markets transactions; federal securities laws compliance; corporate governance; executive, equity, and director compensation; and the responsibilities of board members, as well as provides litigation updates. The webinars are presented by Morgan Lewis’s securities, corporate governance, executive compensation, and litigation lawyers. Participants in the academy are able to pick sessions of particular interest or attend the entire series.
Read more about the 2019 Global Public Company Academy and learn how to register.
Join Morgan Lewis this month for these programs on a variety of topics in employee benefits and executive compensation.
- Morgan Lewis Global Public Company Academy—2018 Proxy Disclosure Highlights/Current Issues, Including ISS and Glass Updates | January 16 | Webinar presented by Mims Maynard Zabriskie and Celia Soehner
- Risk Mitigation Strategies for Benefit Plans | January 23 | Webinar presented by R. Randall (Randy) Tracht and Jonathan Zimmerman
- Morgan Lewis M&A Academy: Planning for the Plans: Executive Compensation and Employee Benefit Plans | January 29 | Webinar presented by Amy Pocino Kelly and Gina Lauriero
We’d also encourage you to attend the firm’s Global Public Company Academy series.
- Morgan Lewis Global Public Company Academy—A comparison of Transaction Issues Across SE Asia) | January 30 | Webinar presented by Bernard Lui and Wai Ming Yap
Visit the Morgan Lewis events page for more of our latest programs.
Companies that provide meals and snacks on their “business premises,” as well as manufacturers of snack or breakroom products, will be particularly interested in a possible expansion of what many have assumed would be a 50% disallowance of deductions for all coffee, doughnuts, fruit, soft drinks, candy, and similar items, effective after 2017. A gap in the regulations points to the possibility that breakroom snacks that are considered de minimis fringe benefits provided on business premises might remain 100% deductible.