White Paper Explains Tax Reform Effects

Wolters Kluwer Legal & Regulatory U.S. issued a white paper, “Tax Cuts and Jobs Act Will Present Retirement, Benefits, Executive Compensation and Payroll Professionals with New Challenges in 2018,” examining impacts of the tax bill recently signed into law by President Donald Trump.

Authored by Wolters Kluwer experts John W. Strzelecki, J.D., Glenn Sulzer, J.D., and Tulay Turan, J.D., the white paper unpacks aspects of the new law that will affect a wide range of retirement, benefits and payroll professionals, including the elimination of individual mandate penalty, modification of personal income tax rates, revised standard deduction, and the repeal of Roth re-characterization.

Highlights of the paper include analyses of the following topics:

• The impact on qualified plans of revised pass-through deductions,
• Deferral election for qualified equity grants,
• Modification of $1 million deduction limit on executive compensation,
• Limitations on employer deductions for fringe benefits, and
• Suspension of personal exemptions.

“The Tax Cuts and Jobs Act is the most sweeping tax legislation in decades and will affect several areas of the law—from payroll and employee benefits, to pensions and executive compensation,” said Glenn Sulzer, a senior analyst for the Corporate Compliance division of Wolters Kluwer and a co-author of the paper. “This white paper will help a wide range of professionals to fully understand these changes and how they will impact their clients.”