Benefits and Executive Compensation

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Q. Are there any COVID-related tax incentives that could benefit employers and employees?

A. Employers and employees alike continue to feel the impact of the COVID-19 pandemic. Many employers have reduced revenues and need to conserve resources. Many employees have been furloughed or permanently laid off and may need to prematurely access vested retirement benefits to make ends meet. Other employees need leave from work due to their own or a family member’s COVID-related illnesses. COVID-related tax incentives fall into two broad categories: incentives that advantage employers and incentives that advantage employees. Our Firm’s prior alert, Revised Summary of CARES Act and FFCRA Tax Credit and Payroll Tax Relief, provides an overview of the tax advantaged programs that are available to employers. These generally advantage the employer by providing a credit to the employer’s payroll taxes or by providing a low interest loan to the employer. There are also programs that an employer can implement that can save the employer money in the short- and long-term. In addition, there are programs that ease an employee’s access to amounts the employee has accrued under an employer’s tax qualified retirement program, and others that permit employers to provide employees with certain special benefits during these difficult times. Employees can even provide assistance to others impacted by COVID-19 through leave sharing/donation programs. Each program is outlined below.

Troutman Sanders and Pepper Hamilton officially became Troutman Pepper (Troutman Pepper Hamilton Sanders LLP), a national law firm of 1,100 attorneys in 23 U.S. offices. Our new firm offers clients greater resources and bench strength, enhanced practices, and expanded geographical reach.

We are now one of the 50 largest law…

For two months, an outbreak of a novel coronavirus (COVID-19) has been spreading rapidly across the world. Is your company prepared to handle the issues that will arise if the virus spreads to your community or even becomes a pandemic? In this presentation, Ashley Hager will discuss tips for managing…

Last month the EEOC issued its Final Rule on Employer Wellness Programs and Title I of the Americans with Disabilities Act (ADA). Title I of the ADA prohibits employers from obtaining medical information from employees unless those inquiries are part of a voluntary employee health program. Under the ADA an employee wellness program must also offer reasonable accommodations to individuals with disabilities so they have equal access to program fringe benefits.

The media has been full of stories recently about efforts by the city councils in New York City and Philadelphia to pass laws requiring employers to provide employees with paid sick leave.  While it appears that the New York City law will come into effect, as it has enough support in the council to overcome the expected veto of Mayor Bloomberg, the Philadelphia city council does not have enough votes to override Mayor Nutter’s veto.

Common sense tells us that it is a good idea for certain companies – hospitals, physicians’ offices, nursing homes, day care centers, and more, to take appropriate measures to safeguard the health of both the workforce and any population it serves.  By this logic, a policy requiring healthcare employees to receive flu shots seems reasonably calculated to protect employees and patrons, as well as to control the spread of communicable disease.  But, is it legal? 

The last post, Part 1, set forth the first five items on a wish list from an attorney’s perspective – specific ways in which a Human Resources department can minimize problems down the road.  The final five items are just as important.  Read on …