Category Archives: Income Taxation of Employees

Public Agency Early Termination Incentive Programs Are Subject to Special Tax Rules

By Jeff Chang With the looming specter of COVID-related budget shortfalls, many cities and special districts are thinking about early termination incentives as a way to reduce payroll costs. If your city or public agency is considering the use of … Continue reading

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Take Your Pick – Employees Allowed to Choose Between Future 401(a) Plan Contributions and Future HRA Contributions

By Jeff Chang A recently issued IRS private letter ruling may provide public agencies and their employees with another way to give employees more control over the types of retirement benefits they will eventually receive. As we previously reported, governmental … Continue reading

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Tightening Budgets, Layoffs and Ongoing Labor Negotiations Highlight the Value of Retiree Health Reimbursement Arrangements

By Jeff Chang Given the current circumstances, many public agencies are finding ways to use health reimbursement arrangements as creative and cost-effective benefits for their employees and former employees. As explained in earlier posts, HRAs possess a number of important … Continue reading

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CARES Act Authorizes Limited Employer Repayment of Student Loans

By Jeff Chang Public agency employers trying to recruit or retain highly skilled or highly paid younger workers (e.g., doctors, nurses, IT specialists, engineers) may want to take advantage of a limited employer-paid benefit under the CARES Act. This limited-time … Continue reading

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Take Care When Cost-Sharing Under CalPERS

By Jeff Chang With overall required contribution rates increasing at an alarming rate, most CalPERS employers – particularly those with significant “classic” safety populations – are looking for help to pay for these obligations.

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