Government Tax Seminar (In-Person)

Our diverse bench of speakers will help you navigate the payroll tax issues faced by local governments, cities, counties, water districts, joint power authorities, and special districts. 

WHAT IS INCLUDED WITH REGISTRATION:

1. Our customary Government Tax Manual, updated to include 2022 developments
2. Five hours of CPE Credit
3. Breakfast and lunch will be provided

SPEAKERS:

• Marcus Wu, Employee Benefits and Tax Attorney at Pillsbury Winthrop Shaw Pittman LLP
• Stephanie Lowe, Employment Attorney at Liebert Cassidy Whitmore
• Bill Morgan, Retired CPA

YOU WILL LEARN:

Topics We Will Cover:

“The Transition Year: A Guide to 2022 Tax Changes as Covid-19 Programs End!”

2022 Tax Developments:

Heightened IRS Audit Activity

• IRS substantially increasing payroll and AP audits of governmental entities.
• IRS requiring government agencies to pay the 24% Backup Withholding for Form 1099 omissions or errors
• IRS audits of common-law employers and corresponding Social Security tax obligations

Claiming Tax Credits

• Retroactively claiming 2021 payroll tax credits and COBRA premium credits (Some agencies haven’t yet claimed payroll tax credits for COVID leave payments made in 2021. We will discuss how this can be done retroactively.
• Certain public agencies entitled to Employee Retention Credit for 2020 and 2021

Settlement Agreements

• Sample “tax provisions” that should be included in a settlement agreement
• IRS rules for properly reporting “back pay”
• DOL issues new “Economic Reality Test” for Determining an “Independent Contractor” under the FLSA Rules

Review of 4850 Leave Rules

• Public agencies continue to struggle with 4850 leaves

Benefit Programs

• How government agencies can make HSA contributions for retired employees
• How Section 127 plans can provide for tax-free student loan repayments
• Special rules for electing accrued leave deferrals under a 457(b) deferred compensation plan

CalPERS Issues

• CalPERS litigation re: pension benefits (An outside staffing firm in California is defending five individuals who were determined by CalPERS to be providing part-time public services after retirement. CalPERS has demanded that these employees pay back all retirement benefits received during the period that they worked. This matter is currently being litigated in Superior Court. We will discuss this case, and the implications for retaining part-time employees through an outside staffing agency.)
• Under SB 278, CalPERS can now retroactively audit California government agencies and assess such agencies for underfunded pension contributions (This legislation transfers almost all of the risk of misreported compensation to the employer.)

Employee Claims

• California School Teacher makes constitutional challenge against School District for withholding payroll taxes. (We will discuss what the proper legal response should be under these circumstances.)

Wind down of COVID programs:

During 2022, many of the Covid grants and programs established for California government agencies have ceased or are phasing out. Concurrently, interim tax rules that were put in place during Covid are also phasing out - and such rules are not necessarily reverting to the pre-Covid rules. Our 2022 program will discuss the after-Covid tax rules for the following programs or benefits:

• Fringe benefits related to automobiles and other vehicles
• Accident and health plans
• Cafeteria plans, including “flexible spending arrangements” (FSAs)
• Student loans forgiveness under “Educational Assistance Programs”
• Transportation fringe benefits
• Other employee fringe benefit programs
• Post-retirement requirements for CalPERS retired annuitants will no longer be suspended
• A “work-from-home” employee in California has sued his employer re: the interpretation of California Labor Code 2802, as to what expenses should be reimbursed to remote workers. We will discuss the affect of this court case on expense reimbursements made by government agencies to their remote employees.