Payroll, Compensation, Pension & Benefits - Recent Threads

Payroll Congress Day 2: When Accuracy Becomes Strategy—and Pay Becomes a Promise

Neil Vicente — Mon, 18 May 2026 12:36:49 GMT

Payroll Is No Longer Invisible

For decades, payroll was expected to function invisibly. When it worked, no one noticed. When it failed, everyone did.

At PayrollOrg’s 44th Annual Payroll Congress, Day 2 made the case that this quiet invisibility is no longer possible—or desirable. In a year defined by legislative volume, new reporting mandates, rising fraud exposure, and a rapidly shifting workforce, payroll accuracy has become something more than a back‑office responsibility. It is now a trust‑bearing function, shaping how employees evaluate their employer and how regulators assess risk.

Across Wednesday’s programming, one theme surfaced repeatedly: what payroll gets right—or wrong—now carries meaning beyond compliance. For employees, particularly a younger workforce accustomed to immediacy and transparency, consistent and accurate pay is interpreted as stability. For regulators, execution flaws signal systemic weakness more than isolated error.

To dig deeper, visit the original article on the Thomson Reuters blog.

Payroll Congress Day 1: Where Compliance Risk Begins—and How Errors Escalate

Neil Vicente — Mon, 18 May 2026 12:33:42 GMT

Day 1 Focus: Managing Core Risks in a High‑Change Year

PayrollOrg’s 44th Annual Payroll Congress opened Tuesday with a practical examination of how payroll compliance fails—and how those failures compound in a complex regulatory environment. Across three technical workshops and a context‑setting opening general session, speakers framed Day 1 around a central theme: Core Compliance Risks & Error Prevention.

The message was not that payroll faces fewer rules in 2026. On the contrary, presenters repeatedly acknowledged escalating state, local, and federal complexity. Instead, Day 1 focused on where payroll organizations most often lose control while navigating that complexity—tax notice management, payroll tax account maintenance, multistate exposure, and routine errors that trigger penalties and audits.

To dig deeper, visit the original article on the Thomson Reuters blog.

Should We Provide a COBRA Notice of Unavailability to an Individual Who Is Not Covered Under Our Plan?

Neil Vicente — Mon, 18 May 2026 12:30:38 GMT

QUESTION: We received notice from an employee that his son turned age 26 and is no longer an eligible dependent under our company’s group health plan. According to our insurer, however, the son is not covered under the plan because his coverage was previously dropped during open enrollment. Do we still need to send a notice of unavailability informing the employee’s son that he is not entitled to elect COBRA?

ANSWER: Yes. The DOL’s COBRA regulations require a plan administrator to provide a notice of unavailability to certain individuals who may expect to receive COBRA coverage (or an extension of COBRA coverage). The notice is required for any covered employee, qualified beneficiary, or “other individual” for whom the administrator has received any of the following notices and has determined that COBRA coverage (or an extension of COBRA coverage) is not available: (1) notice that a qualifying event has occurred; (2) notice that a second qualifying event has occurred; or (3) notice that a qualified beneficiary has been determined by the Social Security Administration to be disabled.

To dig deeper, visit the original article on the Thomson Reuters blog.

Is AI Changing Payroll and Accounting Jobs or Making Professionals More Valuable?

Salman Khan — Tue, 12 May 2026 14:37:20 GMT

AI and automation are becoming major topics in discussions about payroll, accounting, and HR in 2026. Many businesses are now using automation for bookkeeping, payroll calculations, invoice processing, reconciliation, and reporting.

However, according to industry reports, organisations still require competent individuals who are conversant with compliance, payroll management, accounting, and finance issues. Indeed, payroll is becoming an essential business component rather than an administrative task.

At KBM Training & Recruitment, we are seeing growing demand for:

Sage Payroll courses
Cloud accounting knowledge
VAT and tax compliance understanding
Practical accounting and payroll training
Real business experience alongside qualifications

The industry is changing quickly, but practical skills and adaptability remain essential. Employers now want professionals who can work with technology, not compete against it.

Do you think AI will reduce accounting and payroll jobs or create more opportunities for skilled professionals?

Benefits of CTC Expansion Bill Vary by Family Type, Analysts Find

Nageshwaran Gopal — Mon, 11 May 2026 16:28:25 GMT

Overall Distributional Effects

The TPC report, published May 1, estimates that among all families with children, about 62% would see a net tax reduction and 32% would face a higher tax bill. Families receiving a tax cut would see an average benefit of about $2,100, while those facing an increase would pay about $1,700 more on average. The findings were compiled by Principal Research Associate Margot Crandall-Hollick and Senior Fellow Elaine Maag.

Nearly three-quarters of families with children in the lowest 20% of the income distribution would see their after-tax income increase. The top income quintile is the only group for which the FFA would produce an average net loss, the TPC found, because higher-income families are less likely to benefit from the expanded CTC and more likely to be affected by the SALT cap. Among families with children in the lowest income quintile who would see their after-tax incomes fall, more than 9 in 10 are unmarried. Middle- and upper-income families with children would also see average tax bill increases from the elimination of the CDCTC.

To dig deeper, visit the original article on the Thomson Reuters blog.

Wyden Refers Puerto Rico Tax Incentive Probe to IRS

Nageshwaran Gopal — Mon, 11 May 2026 16:10:30 GMT

Wyden Urges IRS to Investigate Act 60 Tax Scheme

In an April 29 letter sent to IRS Chief Tax Compliance Officer Jarod Koopman, Senator Wyden detailed his committee’s investigation into the compliance of wealthy U.S. persons who established residency in Puerto Rico to take advantage of its Act 60 tax exemption, also known as the “PR tax grant.”

The investigation focuses on situations in which taxpayers move to Puerto Rico, establish residency, and then sell appreciated property, claiming the resulting gain is Puerto Rican source income not subject to U.S. tax. Wyden’s letter describes this as a “serious misapplication of U.S. tax laws” that results in significant underpayment of taxes.

To dig deeper, visit the original article on the Thomson Reuters blog.

Banks File a Cash-Flow Statement Few Investors Use. Should It Be on the Chopping Block?

Nageshwaran Gopal — Mon, 27 Apr 2026 13:36:02 GMT

Why are banks still cranking out cash-flow statements that hardly anyone reads?

That was the uncomfortable question hanging over a Financial Accounting Standards Board meeting Wednesday, as rulemakers pulled the plug on a years-long effort to “fix” the reports, and opened the door to something far more dramatic: getting rid of them altogether.

In a move that could eventually shake up one of the basic pillars of financial reporting, FASB voted April 22, 2026, to abandon its project to revamp the statement of cash flows for financial institutions.

To dig deeper, visit the original article on the Thomson Reuters blog.

IRS Cuts, Pro-Wealthy OBBB Changes Strained Filing Season, Analysts Say

Nageshwaran Gopal — Mon, 27 Apr 2026 13:27:16 GMT

Funding, Staffing Gaps Weaken Agency

A decade of budget cuts has left the IRS struggling to perform its basic functions, a problem exacerbated by recent congressional action. Congress recently passed a fiscal year 2026 appropriations package that cut $1.1 billion from the agency’s annual budget and rescinded most of the remaining multiyear funding provided in the 2022 Inflation Reduction Act (IRA) to rebuild the agency, according to the CBPP’s April 9 report “Three Strikes Against Filers This Tax Season.” The base IRS budget is now 40% below its 2010 level when adjusted for inflation, the report states.

CBPP Deputy Director of Federal Tax Policy Samantha Jacoby, who authored the report, described the trend to Checkpoint as part of a long-term effort of “effectively hollowing out the agency by reducing funding.” She noted that the IRA funding was meant to give the agency “long term certainty so that it could make investments that needed to be made over multiple years,” but rescissions have since undermined that goal.

To dig deeper, visit the original article on the Thomson Reuters blog.

Experts Find Profitable Corporations Paid Little or No Federal Income Tax in 2025

Nageshwaran Gopal — Mon, 20 Apr 2026 15:04:20 GMT

ITEP Finds Widespread Corporate Tax Avoidance

Despite earning over $105 billion in collective pretax income, “tax-avoiding corporations” paid no federal income tax according to an April 14 report from ITEP. Instead of paying the statutory 21% corporate tax rate, these companies received a total of $4.7 billion in tax rebates, resulting in a total tax break of $26.7 billion for the year, per the report.

The companies identified by ITEP as paying a 0% federal tax rate represent a wide range of industries. Among them are major household names, including Tesla, which paid no federal income tax on almost $5.7 billion of U.S. income, per the report. ITEP also found that United Airlines avoided all federal income tax on almost $4.3 billion in U.S. income, while Yum! Brands — the parent company of KFC, Pizza Hut, and Taco Bell — paid no federal income tax on over $1 billion in pretax profits. Other well-known companies are also listed in the report, including 3M, Citigroup, CVS Health, Walt Disney, and Duke Energy.

To dig deeper, visit the original article on the Thomson Reuters blog.

Three huge benefits of tax return automation for accounting firms

Nageshwaran Gopal — Mon, 20 Apr 2026 14:21:33 GMT

Why delaying tax automation is costing firms time, talent, and growth opportunities

Highlights

Automating manual data input and workpaper organization helps reclaim valuable preparer time
Better efficiency helps firms increase capacity without increasing headcount
Fast 1040 turnaround opens the door for more profitable advisory engagements

To dig deeper, visit the original article on the Thomson Reuters blog.

Payroll pulse: AI, the payroll ledger, and the real meaning of “touchless payroll”

Neil Vicente — Mon, 13 Apr 2026 12:28:56 GMT

The urgency of payroll integrity in the age of AI and automation

Artificial intelligence is moving rapidly into payroll systems, often marketed as the next step toward “touchless” processing. AI‑enabled tools now promise to detect anomalies, summarize legislation, forecast payroll outcomes, and reduce manual intervention. For payroll professionals responsible for the payroll ledger, however, the promise of fewer human touches raises a fundamental concern: how do you maintain control over gross‑to‑net accuracy when machines increasingly influence the process?

That concern becomes more urgent at the moment payroll becomes irreversible, when calculations are finalized and the ACH file is released. At that point, payroll is no longer theoretical or predictive. It is financial execution, governed by compliance rules, audit requirements, and employee trust.

To dig deeper, visit the original article on the Thomson Reuters blog.

When Is a Dependent Child Considered to Be Age 26 for Purposes of Terminating Group Health Plan Coverage?

Neil Vicente — Mon, 13 Apr 2026 12:25:10 GMT

QUESTION: Our company sponsors a group health plan that offers coverage to eligible employees and dependent children. We understand that we must make coverage available until a child is age 26. At what point during the month of the child’s 26th birthday is it permissible for our plan to terminate coverage for the child?

ANSWER: Group health plans that offer dependent coverage are required to continue making coverage available for an employee’s child until the child’s 26th birthday—regardless of the child’s residency, financial dependence, student status, employment, or other factors. Your plan will satisfy the dependent coverage requirement if coverage is provided until a child attains 26 years of age. As an example, assume an employee’s child’s birthday is July 17. The plan need only offer coverage for the child through the day before his or her 26th birthday—i.e., July 16.

To dig deeper, visit the original article on the Thomson Reuters blog.

DOL Wage and Hour Chief Outlines 2026 Priorities, Rulemaking Agenda, and Payroll Risk Areas at Capital Summit

Neil Vicente — Mon, 23 Mar 2026 12:19:13 GMT

The U.S. Department of Labor’s Wage and Hour Division (WHD) is pushing a familiar two-track approach in 2026: provide clearer rules and compliance tools for employers trying to do the right thing, while concentrating enforcement resources on “truly bad actors” and egregious violations.

Speaking during the PayrollOrg Capital Summit session “Best Practices for Wage and Hour Compliance,” WHD Administrator Andrew Rogers, Esq. said the Division is working “to provide clarity and reduce uncertainty for American employers and workers,” while continuing enforcement priorities that include overtime, child labor in hazardous occupations, and new H‑1B-related initiatives.

To dig deeper, visit the original article on the Thomson Reuters blog.

GAO Insights Reinforce Payroll’s Role in Tax Accountability at Capital Summit

Neil Vicente — Mon, 23 Mar 2026 12:11:13 GMT

The U.S. Government Accountability Office used the second day of the PayrollOrg’s Capital Summit to outline how ongoing workforce disruption, legacy systems, and emergency tax programs have strained IRS operations, with downstream effects for employers and payroll professionals.

During the session “Government Research on Tax Accountability,” Dawn Bidne, Senior Analyst, and Erin Saunders‑Rath, Ph.D., Assistant Director in GAO’s Strategic Issues team, walked attendees through recent GAO findings on IRS filing season performance, information reporting, and the employee retention credit (ERC).

To dig deeper, visit the original article on the Thomson Reuters blog.

Capital Summit Session Warns Multistate Payroll Compliance Risks Are Growing With Remote Work

Neil Vicente — Mon, 23 Mar 2026 12:10:25 GMT

As remote and hybrid work arrangements continue to reshape where employees live and perform services, payroll professionals are facing increased exposure to multistate tax compliance risks.

That challenge was the focus of the Capital Summit session “Essential Insights on Payroll Tax Compliance for Multistate Workforces,” presented by Michael Mahoney, Esq., Shareholder, and Stephen Kenney, Esq., Associate, of Ogletree Deakins. The session addressed state income tax withholding, unemployment insurance, paid family and medical leave (PFML) reporting, and employer registration obligations for distributed workforces.

To dig deeper, visit the original article on the Thomson Reuters blog.

State PFML Changes Pressure Payroll in 2026

Nageshwaran Gopal — Tue, 17 Mar 2026 11:24:05 GMT

By Vicky Petties, CPP, Checkpoint News

Paid family and medical leave (PFML) remains one of the fastest-moving compliance areas affecting payroll. Although Congress has not enacted a national paid leave program, legislative activity continues at both the federal and state levels, and state programs already in place continue to expand. For payroll professionals, the result is a growing need to monitor new deduction requirements, employer contribution rules and reporting obligations across jurisdictions.

For 2026, the payroll focus is less about whether PFML will continue to grow and more about how quickly payroll systems, processes, and vendor relationships can keep up.

To dig deeper, visit the original article on the Thomson Reuters blog.

IRS Flags Phishing, Impersonation in 2026 Dirty Dozen; Experts Explain Why Payroll Is a Prime Target

Nageshwaran Gopal — Tue, 17 Mar 2026 10:52:54 GMT

Phishing and impersonation scams once again top the IRS’s 2026 Dirty Dozen list, reinforcing warnings that tax season remains a prime opportunity for fraudsters. While IRS impersonation schemes are familiar to many employers, experts say the more persistent and damaging threat increasingly comes from employer‑based and payroll‑adjacent scams that target W‑2 data and employee payroll systems.

Sharell Barshishat, global advisory director for North America at BioCatch, says payroll functions are attractive targets because employees are conditioned to expect tax‑related communications during filing season and often feel pressure to act quickly. Matt O’Neill, founder of 5OH Consulting LLC and a former U.S. Secret Service agent, says attackers intentionally blend fraud into routine payroll workflows, making scams difficult to distinguish from legitimate business activity.

To dig deeper, visit the original article on the Thomson Reuters blog.

Can a Qualified Educational Assistance Program Be Used to Repay Employees’ Student Loans?

Neil Vicente — Mon, 09 Mar 2026 14:53:14 GMT

QUESTION: Many of our company’s employees have student loans. Could we help them repay those loans using a qualified educational assistance program?

ANSWER: Educational assistance programs under Code § 127 currently can be used to help employees repay certain student loans, though certain restrictions apply. Here are some things to consider:

Applicability Date. The loan repayment provision, originally set to expire at the end of 2025, was extended by July 2025 legislation and is now permanent and applies to payments made after March 27, 2020.
Qualifying Loans. Loan repayment benefits can be used to pay principal or interest (or both) on any qualified education loan incurred by an employee for the employee’s education. For this purpose, the term “qualified education loan” has the same meaning as it has for the federal income tax deduction on education loan interest, which covers most loans for students who are enrolled at least half-time in a program leading to a degree, certificate, or other recognized educational credential at an accredited post-secondary institution. For more information on which loans qualify, see IRS Publication 970.

To dig deeper, visit the original article on the Thomson Reuters blog.

The real cost of corporate income tax errors: why provision accuracy is a competitive advantage

Nageshwaran Gopal — Tue, 03 Mar 2026 15:47:02 GMT

Here’s what we’ve learned from working with tax teams worldwide: corporate income tax errors cost far more than penalties. They quietly erode the speed, confidence, and strategic impact that today’s tax teams are expected to deliver.

Highlights

Provision accuracy is no longer just a compliance requirement. It’s a strategic differentiator
The true cost of income tax errors extends far beyond penalties
Sustained accuracy enables speed, confidence, and scalability

To dig deeper, visit the original article on the Thomson Reuters blog.

SCOTUS Considers Constitutionality of State Tax Foreclosure Practices

Nageshwaran Gopal — Tue, 03 Mar 2026 15:08:09 GMT

The U.S. Supreme Court heard oral arguments February 25 in a case that could reshape how states handle tax foreclosures and the rights of property owners whose homes are seized and sold for unpaid taxes. (Pung v. Isabella County, No. 25-95)

At issue is whether Michigan’s process – allowing counties to take and sell a property at an artificially depressed auction sale price rather than the property’s fair market value – violates the 5th Amendment’s Takings Clause. The petitioner also challenges the county’s act of taking real property worth far more than needed to satisfy a disputed tax debt as violating the 8th Amendment’s Excessive Fines Clause.

To dig deeper, visit the original article on the Thomson Reuters blog.

OECD Side-by-Side Deal Has its Limits, International Tax Pro Says

Nageshwaran Gopal — Tue, 03 Mar 2026 14:54:54 GMT

One cross-border tax attorney sees the Organization for Economic Cooperation and Development’s (OECD) new side-by-side safe harbor as patchwork relief for U.S.-parented multinationals, given its non-binding nature and the continued exposure to local top-up taxes.

Instead of a clean exemption from the OECD ‘Pillar Two’ 15% global minimum tax adopted by 140 other counties, the framework leaves U.S. companies facing ongoing compliance challenges, according to Robert Christoffel, counsel at Saul Ewing.

To dig deeper, visit the original article on the Thomson Reuters blog.

Growing Creator Economy Raises New Tax and Payroll Compliance Considerations

Neil Vicente — Mon, 23 Feb 2026 11:49:16 GMT

From side hustle to small business

As the creator economy expands into what industry estimates place at a $205 billion global market, many content creators are discovering that growth brings new business responsibilities alongside creative opportunity. That shift was a central focus of From Passion to Profit: What Creators Should Know for Tax Season 2026, a February 11 event in Greenpoint, Brooklyn, hosted by H&R Block, which brought together tax professionals and creators to discuss how quickly creative ventures can evolve into businesses facing tax, payroll, and compliance obligations.

Andy Phillips, Vice President of The Tax Institute at H&R Block, framed creators as part of a broader trend affecting small businesses. “Creators are just a microcosm of small business, of the broader small business community,” Phillips said, noting that creators often encounter tax and payroll issues earlier than many traditional entrepreneurs.

To dig deeper, visit the original article on the Thomson Reuters blog.

ADP Pushes for WOTC Screening Changes

Neil Vicente — Mon, 23 Feb 2026 11:46:41 GMT

Payroll and HR services provider ADP is calling on Congress to incorporate a “legislative fix” as it considers renewal of the now-expired Work Opportunity Tax Credit (WOTC).

ADP supports renewal of the credit – meant to incentivize hiring certain marginalized individuals – but says it wasn’t serving the intended purpose. It is advocating for WOTC-eligibility screening earlier in the job application process to ensure the credit serves as a true incentive to hire certain applicants. Such a change, however, is not without risk.

WOTC Basics

The WOTC, which expired at the end of 2025, is a federal tax credit for employers that hire individuals from certain targeted groups who have consistently faced significant barriers to employment, such as veterans, SNAP recipients, and ex-felons. The credit is calculated as a percentage of a new hire’s first-year wages, provided the employee works a minimum number of hours.

To dig deeper, visit the original article on the Thomson Reuters blog.

Must a Plan Provide Extended COBRA Coverage Because of a Spouse’s Disability?

Nageshwaran Gopal — Mon, 16 Feb 2026 14:26:06 GMT

QUESTION: A recently terminated employee has elected COBRA for himself, his spouse, and his children. He notified us within a month after his termination that his spouse is disabled, received a Social Security Administration (SSA) disability determination several years ago, and is receiving Medicare. We know we must offer COBRA coverage to the entire family, but must the plan provide a disability extension (from 18 months to 29 months) due to the spouse’s disability?

ANSWER: You are correct that COBRA coverage must be offered to the employee’s entire family, including the spouse. Other health coverage (including Medicare entitlement) that was in effect before a COBRA election does not disqualify a qualified beneficiary from electing COBRA. And because of the spouse’s disability, COBRA coverage must be provided to everyone in the family for an extended period of up to 29 months.

To dig deeper, visit the original article on the Thomson Reuters blog.

Corporate Tax Money, Mapped at Last: New Disclosures Show Big Overseas Payments and Ignite Scrutiny

Nageshwaran Gopal — Mon, 16 Feb 2026 13:51:07 GMT

The First Wave of Filings Fuels “America-Last” Claims

Now the early results are fueling a fresh round of tax-code scrutiny. The FACT Coalition on February 6, 2026, said the first wave of filings shows a pattern it calls “America-last”: companies with major U.S. operations paying surprisingly little in U.S. federal income taxes while sending larger checks to foreign governments, including in places often associated with tax avoidance strategies.

Georges said the cash-tax breakdowns are already showing “companies paying substantially more tax to foreign governments than… the US federal government,” a pattern he said is turning up even among “iconic American brands.”

To dig deeper, visit the original article on the Thomson Reuters blog.