15 November 2017 Senate Finance Committee modifications to tax reform plan includes proposed paid family leave tax credit, removal of worker classification safe harbor and more On November 14, 2017, the Joint Committee on Taxation released modifications to the Senate Finance Committee tax reform plan that includes the following changes of note to the original proposal: 1. The provision that would have required nonqualified deferred compensation be included in federal taxable wages at time of vesting is removed. 2. The business deduction for meals provided on the premises for the employer's convenience would be completely disallowed (a 50% limit was in the original proposal). 3. The business deduction for settlements in connection with sexual harassment/abuse would be disallowed if contingent on a nondisclosure agreement. 4. The worker classification safe harbor for workers in the gig economy and the related information reporting requirements are removed. 5. A business tax credit would be available for wages paid to employees while on Family and Medical Leave. See Tax Alert 2017-1913 for our previous explanation of the Senate Finance Committee tax reform plan and employer implications. Attached is our updated House-Senate side-by-side with the Senate modifications highlighted in yellow. Document ID: 2017-1932 |
