2010 Estate Tax Update : Can Congress Find a solution?
By Paula A. Calimafde, Principal
The federal estate tax system is in a state of chaos. Despite some discussion among lawmakers in the past year, there has been no progress or change to report. The outlook for a good resolution is somewhere between bleak (some believe the best possible result will be having the 2009 estate tax law reinstated for two years only) to murky (a compromise may be in the works which will provide a permanent solution) More details on these and other possible outcomes below.
Employee E-mail/Text Privacy – Supreme Court Ruling
By James R. Hammerschmidt, Principal
Privacy issues have become a prevailing part of society today, from Google to Facebook to cameras that are everywhere and seem to monitor a person’s every move. Some consider it Orwellian, while others regard the explosion of social media as a form of free-spirited expression. It’s paradoxical to some degree. Yet for employers, less concerned with personal practices than professional policies, it can be downright confusing. The question confounding business owners is: can I or can’t I check an employee’s text messages or email account without getting in trouble?
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FAPIIS : Federal Awardee Performance Integrity Database
By Daniel S. Koch, Principal
The federal Government’s new contractor-related database, FAPIIS (Federal Awardee Performance and Integrity Information System) coins a new acronym, rhyming with “tape is,” as in where more red tape is. More importantly, it creates a new obligation for contractors and their principals to self-report violations of law or regulation. It continues the recent regulatory trend for Government contractors placing a premium on preventing violations.
Restrictive Covenants in Medical Practice
By Arnold B. Sherman and Roy I. Niedermayer, Principals
Restrictive covenants have always been a useful and legitimate means of protecting businesses in various professions from unfair competition, especially from departing employees or management who’ve had access and introduction to clients, patients or customers. Such restrictions are especially important for healthcare providers whose personal connections with patients form the basis for a continued relationship.
The Estate Tax Is Gone ( For Now )
By Jeffrey A. Kolender, Principal
As most people know by now, the federal estate tax was repealed as of January 1, 2010. This actually was part of the much acclaimed “death tax” repeal enacted in 2001, but most tax experts never thought the repeal would make its way into law. They said the deficit is too great, the budget has to be balanced, tax revenues are needed to pay for TARP, etc. Congress had tried on several occasions to pass some sort of compromise bill, yet it never happened. What a surprise; politics got in the way of effective governing. Yet that’s a topic for another day.
Mandatory Workplace Arbitration Now A “No Go”
By Hope B. Eastman and Daniel S. Koch, Principals
Recent legislation prohibits mandatory arbitration of employment disputes for defense contractors. The new law may well reflect a trend destined to spread to other businesses.
Sexual Harassment Claims by Men On The Rise
By Hope B. Eastman, Principal
According to a recent Associated Press story citing statistics from the Equal Employment Opportunity Commission, the percentage of sexual harassment claims filed by men from 1990 to 2009 doubled from 8 percent to 16 percent of all claims..
Denying Unemployment Benefits To A Former Employee
by Hope B. Eastman, Principal
Maryland employers who seek to deny an employee’s request for unemployment benefits must first respond to the Department of Labor, Licensing & Regulation (DLLR) Request for Separation Information. A Claims Examiner then reviews all the information and decides if the employee should receive benefits.
Snowpocolypse Changes Inclement Weather Policies
by James R. Hammerschmidt, Principal
“Let it snow, let it snow, let it snow.”
It’s a nice little jingle, but I think most of us on the East Coast have had enough. The accumulation of white stuff –in record-breaking amounts for us Washington-area folks– has also resulted in calls from several clients concerned about their inclement weather policies, particularly in light of the snow’s negative impact on productivity and profits. While employers in many locales across the country might have little occasion to consider or actually use their inclement weather policies, the massive amount of snow that blanketed the mid-Atlantic states this winter has employers in the region focused on implementing, and at the same time, re-considering such policies.
Background Checks Under Scrutiny by State Legislators
by James R. Hammerschmidt, Principal
Most employers are well aware that conducting background checks on prospective employees is tricky business, particularly under the Fair Credit Reporting Act (FCRA). And it may get even trickier in Maryland if the state legislature passes the Job and Financial Privacy Protection Act, which was recently introduced in the Senate as SB 110, or HB 175, the House’s version of the same bill.
2010 Roth IRA Conversions: Tax Opportunity?
by Paula A. Calimafde, Principal and Kevin D’Anna, Associate
Starting in 2010, individuals with an adjusted gross income over $100,000 will be able to take advantage of the benefits of a Roth IRA by converting a portion or all of a traditional IRA or rolling over retirement plan money into a Roth. Not only do earnings grow tax free inside the Roth IRA, but once certain requirements are met, all distributions coming from the Roth are income tax free. With proper planning, it is possible to leave money inside a Roth IRA for decades growing tax free; this could prove to be an exceptional retirement and estate planning opportunity.
Relief From Required Retirement Distributions
by Paula A. Calimafde and Arnold B. Sherman, Principals
The tax code requires that “minimum distributions” be taken from qualified defined contribution retirement plans, IRAs and annuities. In general, a required minimum distribution (RMD) is the smallest amount that must be withdrawn each year by the plan participant or IRA owner.