Procopio: Is That Payment Taxable? 5 Key Tax Facts All Employers Should Know
In his lastest article, Procopio Partner Eric Swenson reviews some of the creative ways employers craft severance agreements, deferred compensation plans, and gift programs in an effort to avoid possible tax consequences. He comments that, “After twenty years in private practice following practicing more than several years as an IRS attorney, I keep thinking that I have seen it all, and then I am once again proven wrong.”
While there are many ways to structure such arrangements, Swenson outlines five general areas that employers need to pay attention to from a tax perspective: fringe benefits, reimbursements, deferred compensation, severance pay, and employee loans.