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Regulatory alert: IRS and OSHA

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in Office Management,Payroll Management

The government has been busy adding to its regulatory agenda. Here’s the latest news from the regulations front.

1. Final regs on Section 83(b) elections. Under tax code Section 83, employees who are paid in company stock or other property that’s subject to a substantial risk of forfeiture aren’t taxed on the value of that property until the risk lapses and the property vests. Exception: Immediate withholding applies if employees file written Section 83(b) elections with you and the IRS within 30 days of receiving the property. They must also attach a second copy of their 83(b) elections to their 1040s.

The paper-based nature of Section 83(b) elections, however, has impeded employees’ ability to e-file their 1040s. Accordingly, final regulations eliminate the requirement that employees include a copy of their elections with their 1040s.

The regs apply to transfers of property on or after Jan. 1, 2016. For property transferred before that date, you may rely on the proposed regs. (81 F.R. 48707, 7-26-16)

2. Final anti-retaliation regs under the Affordable Care Act. Under final regs that became effective Oct. 13, 2016, employees or prospective employees who are fired, intimidated, threatened, coerced, blacklisted or disciplined because they bought individual insurance on the exchange and obtained a premium tax credit have 180 days to file retaliation complaints against you with the Occupational Health and Safety Administration (OSHA).

Should OSHA find that retaliation occurred, you could be ordered to reinstate employees and pay back pay, attorneys’ fees, etc. (81 F.R. 70607, 10-13-16)


A step-by-step payroll compliance guide to each pay period, month and calendar quarter of the year is now available. Download it free here.

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