Willis Towers Watson Insider covers health care and retirement benefit regulations, case law and policy, along with historical trends and future directions. This issue focuses on the Department of Labor’s proposed higher salary thresholds for the overtime pay exemption, IRS guidance for tax-exempt organizations regarding the 4960 excise tax on excess compensation and the federal poverty guidelines for 2019.
All employers will need to examine the effects of the new thresholds and rules on their pay practices to ensure compliance once the regulations take effect, which is expected to be in 2020. Read more.
The interim guidance applies to the excise taxes imposed on excess compensation paid by tax-exempt organizations to covered employees. Affected organizations might want to consider planning opportunities that could mitigate the effect of the new tax. Read more.
Employers that use the federal poverty level (FPL) affordability safe harbor to comply with the Affordable Care Act employer mandate should begin applying the 2019 guidelines when appropriate. Read more.