Government Plans

Loophole For State University Coaches Excess Compensation Is A Congressional Fumble

By Scott E. Galbreath, J.D., LL.M (Tax) on February 26, 2019

Posted in Executive Compensation, Government Plans

Code section 4960 is not reaching one of the major sources of tax that it was intended to, well compensated coaches and athletic directors at public colleges and universities.

The 2017 Tax Act enacted section 4960 to the Internal Revenue Code, a new provision imposing a 21% tax on “applicable tax…

Welcome to The Benefit of Benefits blog, your resource for information and commentary on new legislative, regulatory, and industry developments in employee benefits and executive compensation. Beyond reporting the news and repeating the guidance text, we will clarify the reasoning behind the change and what it means from a practical perspective to employers, employees, and the industry. We will also provide commentary to help illuminate the benefit of the benefits discussed…because compensation is more than just wages.

Author, Scott E. Galbreath, J.D., LL.M (Tax) has more than 30 years of experience representing employers in ERISA, employee benefits, and executive compensation matters.