Legal Cases and Statutory Factors Used to Assess the Reasonableness of Compensation U.S. courts have established multiple factors and guidelines to assess reasonableness in compensation. This article reviews the factors and statutory criteria used to assess the reasonableness of compensation. Determining reasonable compensation for shareholder employees in closely held companies remains a key concern for businesses, valuation professionals, and forensic accountants. U.S. courts, particularly the Tax Court, have established multiple factors and guidelines to assess reasonableness in compensation, most notably detailed in the cases of Mayson Manufacturing Co. v. Commissioner (1949) and Elliotts, Inc. v. Commissioner (1984). The 6th Circuit…
-
-
Show Your Workings! Many engagements to determine or rebut a lost wages claim include many elements established by the expert. This article focuses on the tax aspects of an award, specifically, how should the plaintiff receive a tax component award and, if so, how should this award be calculated. Many engagements to determine or rebut a lost wages claim (in an alleged wrongful termination, improper denial of promotion, wrongful death, or other such litigated dispute involving individuals) have the following elements established by the expert: Establishing the chronology of events; An assumption of the defendant’s liability; Analyzing lost earnings and/or…
-
Influential figures such as Hollywood powerbroker Harvey Weinstein and casino mogul Steve Wynn have had their careers ended amid allegations of sexual misconduct. And several members of the House of Representatives have resigned in recent months over accusations that they too had engaged in misconduct. Wealth management is not immune from these problems. To read the full article in FinancialPlanning, click: Will #MeToo Come to Wealth Management Next?
-
Guidelines Released for Employee Wellness Programs The Equal Employment Opportunity Commission has released guidelines for structuring employee wellness programs that adhere to health privacy regulations and anti-discrimination rules. Employers should notify workers about how their health data will be used and encrypt sensitive information to ensure confidentiality. Bertha Coombs, CNBC reporter, also suggests that wellness screening programs should be voluntary. To read the full article in CNBC, click: Obama Administration Issues Rules for Employee-Wellness Plans.