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Perspectives

US tax reform: Human resources and global mobility

Insights for the path ahead

Congress has approved and President Trump has signed into law US tax reform legislation. As companies look to evaluate and respond to the changes, the potential impact of tax reform on human resources and global mobility programs should not be overlooked.

Report—US tax reform: Understanding the impact to mobility and rewards programs

Tax reform has been a key priority of Congress and President Trump in 2017 and represents the largest changes to the US tax system in over 30 years. The changes are largely focused on reducing the tax burden on individuals and companies; core elements include reducing corporate, passthrough, and individual tax rates and encouraging the “on-shoring” of profits and jobs to the United States. The potential impact of tax reform on US companies is a high priority issue and the effect to HR and global mobility programs should not be overlooked.

The attached report highlights key provisions of the US tax reform legislation passed by the House and Senate (formally referred to as “An Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018”) (“New Law” or “the Act”) that may impact company mobility and rewards programs.

Tax reform: Considerations for accelerating deductions for qualified retirement plans

December 22, 2017, saw the passage of the 2017 Tax Act (the Act), following successful reconciliation of the House and Senate versions of the bill. Tax reform has created opportunities to accelerate deductions related to certain employee benefit programs into a corporation’s 2017 tax year. By accelerating these deductions, the company benefits from higher marginal tax rates in effect prior to the Act and has an opportunity to make additional strategic choices about its programs.

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Tax reform considerations for accelerating deductions for qualified retirement plans

Tax reform: 2018 Form W-4 issued

The Internal Revenue Service (IRS) has issued a new 2018 Form W-4, to employers a result of tax reform legislation (An Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018). Although not all employees will need to complete the new form for 2018, the IRS is encouraging all employees to perform a “paycheck checkup” to review their withholding position. Those employees with more complicated personal circumstances likely will need to file a new Form W-4. Those with more straightforward personal circumstances (e.g., single filing status and no dependents) likely will not need to take any action. This document provides a consolidated summary of the most recent Form W-4 changes announced by the IRS and how employers should respond.

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Tax reform: 2018 Form W-4 issued

US tax reform: Paid family and medical leave

Enacted legislation, commonly referred to as The 2017 Tax Reform Act (the “Act”), added new Section 45S to the Code, providing an additional tax credit. Under the Act, employers are provided an incentive to offer FMLA leave on a paid basis.

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US tax reform: Paid family and medical leave

US tax reform: Impact of Section 162(m) changes and transition relief on excessive compensation

Enacted tax reform legislation has resulted in significant changes to Section 162(m) of the Internal Revenue Code, which is effective for taxable years beginning on and after January 1, 2018. This document outlines the updates to Section 162(m) and additional considerations related to transition rules, covered employees, and deferred tax assets.

US tax reform: Qualified equity grants by private companies under newly added Section 83(i)

US tax reform legislation that passed into law on December 22, 2017 includes impacts for private companies. This document provides a summary of the changes to treatment of qualified equity grants by certain private companies under newly created Section 83(i) of the Internal Revenue Code.

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US tax reform: Payroll implications for businesses

As tax reform law changes come into effect on January 1, 2018, employers must understand what they need to address beginning in 2018 and develop a plan of action. This document provides a consolidated summary of the changes impacting payroll based on known legislation and guidance as of December 29, 2017.

On January 11, 2018, the IRS issued Notice 1036 for 2018 (the “Notice”), along with an explanatory statement and FAQs, to provide some important clarifications for employers. However, it is clear from the information released that the impact of tax reform will continue to affect employers and employees for a number of months.

Dbriefs webcast—US Tax Reform: Impacts to global mobility and rewards programs

January 30, 2018

Host: Grace Melton, partner, Deloitte Tax LLP

Tax reform represents the most significant change in US tax policy since 1986, and its impact on global mobility and rewards programs should not be overlooked. What are important considerations for companies as they revisit their current policies? We'll discuss:

  • Planning considerations related to reduced corporate and individual tax rates.
  • Potential impacts on the costs and policies associated with global mobility programs—could costs actually increase?
  • Potential impacts on overall total rewards program design.

Participants will learn how planning can benefit their organization's global mobility and rewards program activities as new tax laws are enacted.

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Dbriefs webcast—US Tax Reform: Understanding the tax cuts and jobs act

December 18, 2017

Host: Rochelle Kleczynski, partner, Deloitte Tax LLP

In what will be the most significant tax policy change since 1986, Congress is expected to approve, and President Trump is expected to sign, comprehensive tax reform legislation that reduces rates and provides other tax relief for corporations, pass-through entities, and individuals. What should you know? We’ll discuss:

  • The tax relief provisions, revenue offsets, and their potential impact on business and individual taxpayers.
  • The various international provisions impacting multinational corporations.
  • Financial statement reporting (ASC 740) considerations.
  • Particular issues of interest to pass-through entities.

In the first 90 minutes, participants will learn about changes to business and international taxation and how to prepare, while in the last 30-minutes they will explore individual taxpayer considerations under the new legislation.

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