Compensatory equity, such as company stock, held by employees that was acquired in connection with the performance of services may result in unexpected issues.
Reporting & Filing Requirements
The Supreme Court’s denial of Altera’s petition could have significant tax and financial reporting consequences for companies that have excluded SBC costs from CSA intangible development cost pools.
Dependent care assistance program benefits carried over or available during an extended claims period under special temporary COVID-19 relief provisions retain their status as excludable from employees’ gross income and wages, the IRS explains in a notice.
An employer’s failure to comply with SEP rules results in very costly penalties.