Category Archives: News / Updates

CalSavers Retirement Savings Program (Korean version)

캘리포니아 주정부는 은퇴연금플랜을 제공 받지 못하는 직원들을 위해 CalSavers라는 새로운 은퇴연금플랜을 만들었다. 직원이 5명 이상인 회사 및 고용주들은 회사 차원에서 직원에게 401(k), 403(b), SEP IRA, 혹은 Simple IRA 연금플랜을 지원해 주지 않을 경우, CalSavers 가입이 법적으로 요구된다. CalSavers 는 Roth IRA 로서 세후 부담금으로 운영이 되지만 회사 혹은 고용주가 대신 납입을 해 줄 수 없으며 직원의 소득에 따른 제한도 있다. 회사 및 고용주가 CalSavers에 가입 시 30일 이내에 직원들도 자동적으로 가입이 되나, 직원들은 CalSavers 가입 거부를 선택할 수도 있다. 또한, 직원들이 퇴직 혹은 이직시 타주를 가는 경우에도 직원의 CalSavers연금플랜은 유지된다. CalSavers 가입 후 Calsavers 에서 연금플랜 관리 및 직원과의 연락 등을 직접 하지만 직원 정보 업데이트는 회사 및 고용주의 책임이다. Calsavers 가입 의무 기한은 직원 수에 따라 다음과 같다:

회사/사업 규모 기준   가입 의무 기한
직원 수가 100명 이상   9/30/2020
직원 수가 50명 이상   6/30/2021
직원 수가 5명 이상   6/30/2022

가입 의무 기한을 90일 이상 초과하였을 경우 직원 한 명당 250불의 벌금이 부과되며, 180일을 초과한 경우 직원 한 명당 500불의 벌금이 부과된다. 이미 직원에게 연금플랜을 제공하고 있는 경우 CalSavers 웹사이트(CalSavers.com)를 통해 면제 신청이 가능하다.

CalSavers 가입과 관련한 참조사항은 아래와 같다:

  1. CalSavers 웹사이트 (employer.calsavers.com)를 통해 등록이 가능하다.
    • 사업자 등록 번호 (Federal Employer Identification (EIN)) 혹은 납세번호(Tax Identification Number (TIN))과 필요하다. 또한 CalSavers access code가 필요하며 웹사이트에서 요청 가능하다.
  2. CalSavers 가입 후 30일 이내에 직원 명단을 업로드해야 한다.

 

관련하여 자세한 내용은 노동법 변호사와 확인하시기 바랍니다.

CalSavers Retirement Savings Program (English version)

CalSavers is California’s retirement savings program for workers whose employers do not offer a retirement plan. The law requires all California state employers with 5 or more employees to join the CalSavers retirement savings program, unless they offer a company-sponsored retirement plan including a 401(k), 403(b), SEP IRA, or Simple IRA retirement plan. CalSavers is a Roth IRAs which are after-tax contributions with income limits, and employers are not allowed to make contributions on behalf of, or as a match to, employee contributions. If employer registers for CalSavers, employees will be automatically enrolled within 30 days unless they choose to opt out. If they leave the company, their account goes with them — even if they move out of state. CalSavers will manage the plan, communicating with employees about the program, or enrolling them in the plan, but the employers are responsible on updating information. The following deadlines to register are based on the size of the business:

Size of Business   Deadline
Over 100 employees 9/30/2020
Over 50 employees 6/30/2021
5 or more employees 6/30/2022

Employers who miss their deadline are fined $250 per employee after 90 days and an additional $500 per employee after 180 days. If the company already offers a qualified employer-sponsored plan, they can request the exemption on the CalSavers website (CalSavers.com).

To register the CalSavers, please see following brief procedure:

  1. Go to the Calsavers’ Website (employer.calsavers.com) and Complete the registration.
    • You will need the company’s Federal Employer Identification (EIN) or Tax Identification Number (TIN), and your CalSavers access code. To request the access code, please refer its website.
  2. Within 30 days of registration, upload the list of eligible employees.

 

If you need more detail, contact your labor law attorney.

Tax Provisions in the Build Back Better Act

The U.S. House of Representatives on November 19, 2021 passed the “Build Back Better Act,” without a single Republican vote.  With House passage of the bill, the legislation now moves to the Senate, where further changes may be expected. Changes by the Senate would require further House action, given that the House and Senate ultimately must approve the identical version of legislation before sending that legislation to the president.

The tax revenue provisions in the House bill differ in significant respects from the proposals approved by the Ways and Means Committee in September.  Most significantly, the pending House version of the Bill does not include increases in rates—corporate, individual, or capital gains. Those changes were necessary to address concerns raised in the Senate.

Here are some key changes included in the Bill:

SALT deduction cap

The bill would increase the Sec. 164(b) limitation on the deduction for state and local taxes from $10,000 to $80,000 ($40,000 for married taxpayers filing separately and for trusts and estates) but would extend the limitation through 2031.

 

Net investment income tax

The bill would amend Sec. 1411 to apply the tax to net investment income derived in the ordinary course of a trade or business for taxpayers with taxable income over $400,000 (single filers), $500,000 (married taxpayers filing jointly or surviving spouses) or $250,000 (married taxpayers filing separately).

 

Excess business losses

The bill would make permanent the Sec. 461 limitation on excess losses of noncorporate taxpayers. The excess business loss (EBL) limitation, codified in Internal Revenue Code section 461(l), was originally created by the Tax Cuts and Jobs Act of 2017 (TCJA). Appling to taxpayers other than corporations, this provision limits the amount of trade or business deductions that can offset nonbusiness income. The limitation for the 2018 tax year was $250,000 (or $500,000 in the case of a joint return), with these threshold amounts indexed for inflation in subsequent years.

 

High-income surcharge

The bill would create a new Sec. 1A, imposing a surcharge (in addition to any other income tax imposed) on high-income individuals, estates, and trusts. The surcharge tax would equal the sum of 5% of the amount of the taxpayer's AGI that exceeds $10 million ($5 million for married taxpayers filing separately; $200,000 for an estate or trust), plus 3% of the amount of the taxpayer's AGI that exceeds $25 million ($12.5 million for married taxpayers filing separately; $500,000 for an estate or trust).

 

Electric vehicle tax credits

The bill provides for a refundable income tax credit of up to $8,500 for new qualified plug-in electric drive motor vehicles. The credit would be available for qualified electric vehicles that cost up to $80,000 (for vans, SUVs, and trucks) or $55,000 (for other vehicles). The bill would also provide a credit of up to $7,500 for two- or three-wheeled plug-in electric vehicles. The credit would phase out for taxpayers with AGI over $500,000 (married taxpayers filing jointly) or $250,000 (single taxpayers). A smaller credit would be available for the purchase of qualifying used electric vehicles. The bill also provides a credit for the purchase of certain new electric bicycles.

The bill would provide a credit for any qualified commercial electric vehicle placed in service by a taxpayer. The credit would equal up to 30% of the basis of a fully electric vehicle or 15% of the basis of a hybrid vehicle.

 

Wash-sale rules

The bill would amend Sec. 1091 to make commodities, foreign currencies, and cryptoassets subject to the wash-sale rules.

 

15% minimum tax on profits of large corporations

The bill would impose a 15% minimum tax on the profits of corporations that report over $1 billion in profits to shareholders. Any corporation (other than an S corporation, regulated investment company, or real estate investment trust) that for any three-year period has average annual adjusted financial statement income (as defined in new Sec. 56A) over $1 billion and, in the case of corporations with foreign parents, has annual adjusted financial statement income in excess of $100 million, would pay a tax of 15% of its adjusted financial statement income for the year over the amount of its corporate AMT foreign tax credit.

 

1% surcharge on corporate stock buybacks

The bill would impose a tax equal to 1% of the fair market value of any stock of a corporation that the corporation repurchases during the year, effective for repurchases of stock after Dec. 31, 2021. The provision would apply to any domestic corporation the stock of which is traded on an established securities market.

 

Limitation on interest expense deduction

The bill would add a new Sec. 163(n) that limits the amount of net interest expense of certain domestic corporations (or foreign corporations engaged in a U.S. trade or business) that are members in an international financial reporting group. The provision limits the interest expense deduction to an "allowable percentage" of 110% of the domestic corporation's net interest expense.

 

FDII and GILTI changes

The bill would reduce the applicable percentage in Sec. 250(a) for the foreign-derived intangible income (FDII) deduction from 37.5% to 24.8% and the applicable percentage for the global intangible low-taxed income (GILTI) deduction from 50% to 28.5%, resulting in an effective FDII rate of 15.8% and an effective GILTI rate of 15%. The bill would also allow the FDII deduction to be taken into account when determining a net operating loss deduction.

Sec. 951A would be amended to have the GILTI provisions apply on a country-by-country basis, based on controlled foreign corporation taxable units.

Foreign tax credit limitation

The bill would amend Sec. 904 to apply the foreign tax credit limitation on a country-by-country basis, by taxable unit. Taxable units would include the taxpayer corporation itself, each foreign corporation of which the taxpayer is a shareholder, interests held by the taxpayer in a passthrough entity, and any branch of the taxpayer. The bill would also repeal the carryback of the foreign tax credit. The foreign tax credit changes will apply to tax years beginning after Dec. 31, 2022.

 

Small business stock deduction and high-income taxpayers

The bill would amend Sec. 1202 to disallow the 75% and 100% exclusion of gain from the sale of stock if the taxpayer's AGI is over $400,000 or if the taxpayer is a trust or estate.

 

The Senate vote is expected to be made in early December.  However, the Bill faces hurdles in the equally split (50-50) Senate, and taxpayers should continually monitor the legislative development.  Republicans are united in their opposition and there are two Democrat Senators, Manchin and Sinema, expressed their concerns that the levels of new government spending could fuel higher inflation and create new welfare entitlements.

Guidance on Per Diem Rates and 100% Deduction for Meals (Korean version)

IRS 가 Rev. Proc. 2019-48 을 적절하게 적용하여 일일경비 공제비용 (per diem rate) 을 사용하고 있는 납세자를 위하여 business meal 비용의 일시적 100% 공제에 관한 추가 지침을 발행했다.

이전에 IRS 는 Taxpayer Certainty and Disaster Tax Relief Act of 2020 에 따른 Notice 2021-25 를 발행했으며, 이는 업무 접대 비용에 대한 50% 공제에 임시 예외 규정을 추가하여 2021년 1월 1일부터 2022년 12월 31일까지 식당에서 발생하는 업무용 식사 또는 음료 비용에 대해 일시적으로 100% 공제를 허용하도록 했다. Notice 2021-25 와 “식당” 의 정의에 대한 자세한 내용은 다음 링크를 통해 확인할 수 있다. 100% Deduction for Meals

Notice 2021-63 은 Rev. Proc. 2019-48 의 규정을 적절하게 적용하고 있는 납세자를 위한 특별 규정을 제공한다. Internal Revenue Code § 274(n)(2)(D) 에 따르면, 2020년 12월 31일 이후 및 2023년 1월 1일 이전에 발생한 일일경비 (per diem) 의 식비 부분은 100% 공제가 허용된 식당에서 제공하는 업무용 식사 또는 음료 비용과 같이 처리할 수 있다. 납세자는 Rev. Proc. 2019-48 의 section 6.05 를 참고하여 일일경비 (per diem) 의 식비 부분을 계산하여야 한다.

자세한 내용은 Rev. Proc. 2019-48Notice 2021-63 을 참고하기 바란다.