Close
Learning Methods
Classroom
A traditional classroom couples on-site learning with the added value of face-to-face interaction with instructors and peers. With courses and exams scheduled worldwide, you will be sure to find a class near you.
Interaction
Highly Interactive
On-going interaction with instructor throughout the entire classroom event
Interaction with peers/professionals via face-to-face
Components (May Include)
Onsite
On-site instructor-led delivery of course modules, discussions, exercises, case studies, and application opportunities
Supplemental learning elements such as: audio/video files, tools and templates, articles and/or white papers
E-course materials available two weeks prior to the course start date; printed course materials ship directly to the event location
Duration
One + Days
Varies by course ranging from one to multiple days
Technical Needs
Specific requirements are clearly noted on the course page
Virtual Classroom
Ideal for those who appreciate live education instruction, but looking to save on travel. A virtual classroom affords you many of the same learning benefits as traditional–all from the convenience of your office.
Interaction
Highly Interactive
On-going interaction with instructor throughout the entire virtual classroom event
Interaction with peers/professionals via online environment
Components (May Include)
Live online instructor-led delivery of course modules, discussions, exercises, case studies, and application opportunities
Supplemental learning elements such as: audio/video files, tools and templates, articles and/or white papers
E-course materials available up to one week prior to the course start date. Recorded playback and supplemental materials available up to seven days after the live event.
Duration
Varies by course ranging from one to multiple sessions
Technical Needs
Adobe Flash Player
Acrobat Reader
Computer with sound capability and high-speed internet access
Phone line access
E-Learning
A self-paced, online learning experience that allows you to study any time of day. Course material is pre-recorded by an instructor and you have the flexibility to view content modules as desired.
Interaction
Independent Learning
Components (May Include)
Pre-Recorded
Pre-recorded course modules
Supplemental learning elements such as: audio/video files, online quizzes
E-course materials start on the day of purchase
Optional purchased print material ships within 7 business days
Duration
120 Days - Anytime
120-day access starts on the day of purchase
Direct access to all components
Technical Needs
Adobe Flash Player
Acrobat Reader
Computer with sound capability and high-speed internet access
Close
Contact Sponsor
E-Reward
Online
Paul Thompson
Phone: 1 44 01614322584
Contact by Email | Website
Close
Sorry, you can't add this item to the cart.
You have reached the maximum allowed quantity for purchase in your cart or the item isn't available anymore.
Product successfully added to your cart!
Price
View your cart
Continue shopping
Please note our website will be down this Friday, November 5 from 9pm ET – 11pm ET for routine maintenance. We apologize for any inconvenience.
WORKSPAN
WORKSPAN DAILY |

Coronavirus Relief Act Contains Exec Comp Wrinkle

Figure
Bill Oxford / iStock

When news broke that President Joe Biden had signed the American Rescue Plan Act of 2021 into law on March 11, the headline was that the $1.9 trillion stimulus package would go toward families and businesses, as well as efforts to fight the virus and safely reopen schools.

But tucked into the new legislation was also an update to Internal Revenue Code section 162(m), as a way of raising revenue to offset the cost of the massive financial relief bill. This section of tax code generally prohibits a public company from deducting more than $1 million in compensation paid to a current or former “covered employee.” The update will expand the number of “covered employees” subject to the $1 million deduction limit, effective in 2026.

Under current law, “covered employees” include any principal executive officer (PEO) or principal financial officer (PFO) at any time during the taxable year, plus any employee who is among the three highest compensated officers for that taxable year (other than the PEO or PFO). This means that companies must continue to track former employees in this category — because “once a covered employee, always a covered employee” — so that even payments made by a company post-termination and post-death must be viewed under the $1 million deduction limit.

“The (IRS) is keenly aware that many industries and sectors have non-employee officers earning significant amounts of compensation — often times more than executive officers who are reported and subject to the deduction limit — and that companies have been able to take full deduction for compensation expense for these non-executive officers,” said Deborah Lifshey, managing director at exec comp advisory Pearl Meyer. “Trimming compensation-related deductions was likely an obvious source of revenue to offset to the recent $1.9 trillion stimulus package. It is anticipated to boost revenue by nearly $8 billion from 2026-2031.”

The group will be expanded to include employees who are among the five highest compensated employees for the year, in addition to the existing pool of officers who are “covered employees” under the current 162(m). The law, however, does not apply the “once/always” rule under current 162(m) to this top five group of employees, so they will not automatically be treated as covered employees in a future year. This, Willis Towers Watson noted in its analysis, allows companies some planning opportunities to defer compensation until after separation from service, when that person is certain not to be in the top five. However, they noted in their analysis, because a company always will have a top five group of employees for every year, it’s uncertain whether deferring compensation for that individual will yield any appreciable benefit for the company.

Given the nearly five-year delay of when this new expansion will go into effect, it’s fair to wonder if it will remain in its current form.
“It is quite possible that the rule will be amended and clarified, although with the anticipated new revenue it is hard to imagine a complete repeal,” Lifshey said. “There are many outstanding questions such as how will “compensation” be defined to determine the highest paid? Typically, it is defined with respect to the SEC disclosure rules, but some of those rules may not be as applicable to non-officers whose compensation is structured differently from C-Suite employees. So, we expect a good deal of clarifying guidance before the effective date.”

About the Author

Brett Christie Bio Image

Brett Christie is the managing editor of Workspan Daily.


About WorldatWork

WorldatWork is a professional nonprofit association that sets the agenda and standard of excellence in the field of Total Rewards. Our membership, signature certifications, data, content, and conferences are designed to advance our members’ leadership, and to help them influence great outcomes for their own organizations.

About Membership

Membership provides access to practical resources, research, emerging trends, a professional network, and career-building education and certification. Learn more and join today.