The Expanded 4960 Excise Tax: What Tax-Exempt Employers (and their Boards) Need to Know (Webinar)

Jen Dunsizer and Wendy Swary, partners in the Vorys Columbus office and members of the labor and employment group, presented a webinar titled "The Expanded 4960 Excise Tax: What Tax-Exempt Employers (and their Boards) Need to Know" on June 4. 

The presentation focused on tax-exempt employers re-evaluating their compensation programs following the recent expansion of Internal Revenue Code Section 4960.  In general, Section 4960 imposes an excise tax on tax-exempt employers when an employee receives compensation exceeding $1 million or severance payments greater than three times their historic pay.  Previously, this excise tax applied only to a limited group of current and former employees, but the expanded rules now cover virtually all employees.  This webinar explained the changes to Section 4960 and outlined steps tax-exempt employers can take to mitigate their excise tax exposure.