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At most, it is no longer valid in the Northern District of Texas. On December 14, 2018, a federal District Judge in Fort Worth, Texas, ruled that the Affordable Care Act’s (ACA or Obamacare) “Individual Mandate,” requiring individual taxpayers to either purchase health plan coverage containing minimum essential benefits or pay a penalty tax, was unconstitutional and invalid.

On December 30, 2018, Judge Reed O’Connor issued a stay “because many everyday Americans would otherwise face great uncertainty” during an appeal. His ruling granted the intervenor states’ request for: 1) final judgment based on his December 14 decision; and 2) a stay of that judgment. The December 30 ruling allows for an immediate appeal to the Fifth Circuit. It also means the ACA will remain in effect during the course of the appeal.

Continue Reading Is Obamacare Over?

Multinational employers are facing a new era of globalization characterized by the polarized forces of cooperation and competition ─ a duality that makes for a messy business landscape. Our new report,  Globalization 3.0: How to survive and thrive in a new era of trade, tax and political uncertainty, aims to provide corporate leaders with a greater understanding of key trends so they can anticipate, influence and better prepare for the changing world order.

This report focuses on how the aforementioned forces of cooperation and competition are shaping policies in four key areas:

  • Data privacy
  • Investment
  • Labor and human rights
  • Tax

Alongside helpful insights, the report also identifies actions for companies to consider now to prepare for the next era of globalization.

Click here to view and download the full report.

On December 22, 2017, the Tax Cuts and Jobs Act was signed into law bringing significant changes to US tax law. One provision of the Act may further incentivize individuals to work as independent contractors instead of as traditional employees.

The new provision allows for independent contractors, and for service providers structured as a partnership or other flow-through entities, the potential to deduct up to 20% of their revenue from their taxable income. And while some companies might view the opportunity to re-classify individuals from employees to independent contractors as a “win–win” scenario, it could create substantial legal exposure for employers.

Continue Reading New Tax Law Could Incentivize Employees To Become Independent Contractors – Employers Should Proceed With Caution

[As reported by our Baker McKenzie Compensation colleagues]

As of December 20, 2017, both the House of Representatives and the Senate have voted to approve the final version of the Tax Cuts and Jobs Act, in substantially the form released by the Conference Committee on December 15th. The bill is expected to be presented to the President for signature before Christmas, making US tax reform a reality for 2018.

What’s In? From a Compensation & Benefits perspective, among other things, the approved bill includes:

  • Significant changes to Code Section 162(m);
  • A new tax deferral regime for options and RSUs granted by private companies;
  • Elimination of exclusion for fewer than expected employer-provided fringe benefits; and
  • Increased disallowance of compensation-related deductions under Code Section 274.

What’s Out? Fortunately, the final bill does not include a Senate proposal to require the use of a first-in-first-out (FIFO) methodology when calculating capital gains on sale of shares, nor does it add back any of the changes to non-qualified deferred compensation that were proposed in the initial House version of the bill. Also, most of the changes proposed to qualified retirement plans have been eliminated.

Continue Reading Breaking News! Tax Cuts And Jobs Act Expected To Come Into Effect In 2018

Narendra Acharya, a Partner our Chicago office, answers the question and explains why companies rely on them in their global employee mobility programs.

Moving employees across borders quickly and within budget is a formidable task considering the immigration and visa requirements, tax and social security implications, data privacy mandates, employment rules, stock benefits and compensation issues, and FCPA restrictions. But having the ability to mobilize talent is essential to the success of today’s global businesses.

Reach out to your Baker McKenzie attorney for help designing, implementing and managing global mobility programs that address all of the legal and administrative issues and help clients avoid the pitfalls of international personnel transfers.

Also, to order your complimentary copy of The Global Employer: Focus on Global Immigration and Mobility 2017-2018 — CLICK HERE.

This handbook is the go-to resource for in-house counsel, human resource managers and global relocation professionals to identify key mobility issues — ranging from business immigration and employment to compensation and tax.  It provides guidance, and highlights vital information that multinational employers need to know about managing the movement of managers and professionals, trainees and business visitors — from short trips to long-term assignments.

The Tax Cuts and Jobs Act proposes sweeping changes to the taxation of executive compensation and employee benefits. It aims to be effective as of January 1, 2018 – which means limited time to react.

This week our friends over at the Compensation Connection published a helpful alert regarding the proposed tax reform bill.

Click HERE to read a detailed outline of the key proposed changes.

Contact your Baker McKenzie lawyer for more details and stay tuned!