Payroll, Compensation, Pension & Benefits - Recent Threads

SEC nears proposal to scale back executive compensation disclosures

Neil Vicente — Mon, 07 Sep 2026 12:30:12 GMT

The Securities and Exchange Commission (SEC) is very close to issuing a proposal that would cut back executive compensation disclosure requirements. The White House received a draft of the proposal on August 26, 2026, for review, according to a regulatory notice posted by the Office of Management and Budget.

It is unclear how long the White House review will take, but it is likely to be completed in the coming weeks.

The goal of this rulemaking project is to revise Item 402 of Regulation S-K to “rationalize” executive pay disclosure requirements.

The SEC has been routinely using the word “rationalize” since Paul Atkins became chairman in April 2025 to indicate efforts to scale back burdensome disclosure requirements that the current agency leadership deems immaterial to investors. Many companies have complained that executive compensation disclosure is too onerous to prepare and provides little value to investors.

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

Global e-invoicing readiness for omnichannel retailers

Nageshwaran Gopal — Mon, 31 Aug 2026 19:50:45 GMT

Are you prepared for e-invoicing mandates that are months, not years, away? France's business-to-business (B2B) e-invoicing mandate takes effect in September 2026, with Germany following in 2027. The EU's ViDA framework will require e-invoicing for all cross-border B2B transactions by 2030.

In this white paper, you'll learn:

Why 54% of tax professionals cite invoice rejection, not penalties, as their top e-invoicing concern
How omnichannel complexity creates unique compliance exposure across channels and markets
Why point-to-point integrations become unsustainable as mandate coverage expands
A five-point strategic framework for assessing e-invoicing readiness
How to build a compliance model that scales with business growth and regulatory change

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

Global hiring expands, but compliance challenges are keeping payroll teams on alert

Neil Vicente — Mon, 24 Aug 2026 11:39:09 GMT

Global hiring is no longer just a strategy for multinational corporations. Faced with competition for specialized talent, remote work acceptance, and growing pressure to support customers across regions and time zones, employers of all sizes are expanding their hiring footprint beyond national borders. But while technology has made global recruitment easier, compliance remains firmly tied to local laws, creating new challenges for payroll, tax, accounting, HR, and legal professionals.

Recent enforcement activity has underscored the risks associated with international talent strategies. On August 4, 2026, the U.S. Department of Justice announced a $3.2 million settlement with OpenAI and its subsidiary Statsig over allegations involving recruitment practices connected to the PERM permanent labor certification process. The companies agreed to pay $1.2 million in civil penalties and establish a $2 million back-pay fund, while denying the allegations and without admitting wrongdoing. According to the DOJ, the case highlights the need for employers to align immigration, recruitment, and employment compliance processes.

Against that backdrop, many employers are increasingly choosing to hire talent in workers’ home countries rather than relying solely on visa sponsorship and relocation strategies

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

Medicare Advantage pays 10 cents less on the dollar, hospitals say — and a new CFO task force is born to fight it

Neil Vicente — Mon, 24 Aug 2026 11:00:32 GMT

Hospitals are getting shortchanged by Medicare Advantage insurers to the tune of 10 cents on every dollar, according to Ensemble, one of the largest hospital billing firms in the U.S. — a gap significant enough that the company has built an entirely new practice to help finance chiefs manage it.

The firm, which processes $55 billion in patient revenue for hospital clients, this summer rolled out what it calls an “Office of the CFO”: a team of former hospital finance executives embedded directly with clients to catch revenue problems before they hit quarterly results.

“We built a team of leaders who have sat in the CFO seat,” Ensemble founder and Chief Executive Officer Judson Ivy said in announcing the unit. “They’ve managed the month-end close, presented to boards and navigated the same pressures our clients face today.”

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

Complex state payroll requirements keep multistate employers on alert

Nageshwaran Gopal — Mon, 17 Aug 2026 13:56:41 GMT

Key takeaways

Payroll complexity often stems from a combination of changing jurisdictional requirements, large volumes of workforce data, and limited room for error.
States such as California highlight how payroll compliance is closely tied to timekeeping, scheduling, job changes, meal-period data, and workforce activity.
Multistate payroll risk increases when organizations struggle to determine which requirements apply and whether underlying workforce data is accurate.
Payroll corrections, audits, and compliance exposure are often downstream symptoms of workforce data problems occurring well before payroll is calculated.
Payroll professionals and advisors are increasingly focused on governance, data integrity, exception monitoring, and documentation as part of a broader payroll operating framework.

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

Federal EWA proposal highlights debate over worker access to earned wages

Nageshwaran Gopal — Mon, 17 Aug 2026 13:49:01 GMT

Proposed legislation remains in early stages

More than a month after advancing from the House Financial Services Committee, the Earned Wage Access Consumer Protection Act (H.R. 9330) remains in the early stages of the legislative process. But supporters say the proposal has elevated a broader discussion about worker access to earned wages, consumer protections, and the future of payroll-related financial services.

The legislation would establish a federal regulatory framework for earned wage access (EWA) providers and create standards governing disclosures, fees, consumer protections, and provider conduct. Supporters also say it would provide a nationwide framework for an industry currently regulated through a growing number of state laws.

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

Hundreds of thousands of seniors could lose their hospital — and the money fight behind it explains why

Neil Vicente — Mon, 10 Aug 2026 12:13:36 GMT

Becker’s Hospital Review, the hospital industry’s own trade publication, counts roughly 25 major health systems that have dropped or significantly narrowed Medicare Advantage this year, and the list is still growing. Mayo Clinic left most Advantage plans from UnitedHealthcare and Humana. UNC Health cut Humana, WellCare and old Cigna plans. And Johns Hopkins Medicine went out of network with UnitedHealthcare’s Advantage plans.

The dispute comes down to who pays, and how fast. Under the original government-run Medicare, a hospital does what it needs to do for the patient, sends the bill and just gets paid — very simple. But under many of these for-profit Medicare Advantage plans, the hospital has to beg the insurance company for permission first — a process called prior authorization — and then still often has to fight to get paid after they deliver the care.

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

Who Pays for Health Coverage During FMLA Leave?

Neil Vicente — Mon, 10 Aug 2026 12:01:08 GMT

QUESTION: Does our company have to pay for employees’ health coverage while they are on FMLA leave?

ANSWER: Your company does not have to pay your employees’ share of health coverage premiums while they are on FMLA leave. However, employers covered by the FMLA (generally, private-sector employers with 50 or more employees and public agencies and local educational agencies with any number of employees) must maintain coverage under any group health plan for the duration of an FMLA leave at the level and under the conditions that coverage would have been provided if the employee had been continuously employed for the duration of the leave. This means that, if your company is covered by the FMLA, it must pay the same share of the health coverage premiums for an employee on FMLA leave as it would have paid if the employee had not been on leave.

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

Court gives insurer chance to amend ERC refund complaint

Nageshwaran Gopal — Mon, 03 Aug 2026 18:32:26 GMT

A California insurance agency has been granted leave to amend its complaint in a lawsuit seeking a refund for the Employee Retention Credit (ERC), after a federal court found its initial filing failed to adequately plead that its business was partially suspended due to government COVID-19 orders. (I Health and Life Insurance Services v. United States, No. 25-1315T, 7/23/2026)

Judge Armando O. Bonilla of the U.S. Court of Federal Claims deferred a ruling on the government’s motion for judgment on the pleadings. The court gave I Health and Life Insurance Services until August 6, 2026, to file a new complaint that specifies how government mandates caused a temporary cessation of a discrete and more-than-nominal portion of its business.

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

IRS grants filing relief for 2026 FIFA World Cup participants

Nageshwaran Gopal — Mon, 03 Aug 2026 18:30:12 GMT

The IRS has issued new procedural guidance relieving certain foreign FIFA member associations from the requirement to file an annual information return for tax years related to their participation in the 2026 FIFA World Cup. (Rev Proc 2026-28, 7/24/2026)

The new revenue procedure, which amplifies existing guidance, provides a specific filing exception for tax-exempt foreign organizations participating in the recent international soccer tournament.

The IRS reasoned that the compliance burden of filing Form 990, Return of Organization Exempt from Income Tax, which requires reporting worldwide operations, would be disproportionate to the informational value provided by the filings, given the temporary and limited nature of the organizations’ U.S. activities.

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

Bill would provide new tax incentives for affordable housing preservation

Nageshwaran Gopal — Mon, 20 Jul 2026 14:16:15 GMT

The HOPE Act

The Housing Opportunities and Preservation Enhancement (HOPE) Act, H.R. 9573, intends to attract private investment for the rehabilitation of affordable housing. The bill targets residential rental properties that are at least 15 years old, many of which are past their compliance period for the Low-Income Housing Tax Credit (LIHTC) under IRC § 42 and at risk of being converted to market-rate units.

The HOPE Act would make smaller-scale preservation projects more attractive to individual investors by offering several key tax benefits. The legislation would exempt investors in qualified properties from the passive activity loss rules under IRC § 469 and the profit-motive rules of IRC § 183. This would allow investors to deduct losses from these properties against other income.

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

How Long Must an Applicable Large Employer Offer Coverage to a Dependent Child Approaching Age 26 to Avoid Employer Shared Responsibility Penalties?

Neil Vicente — Mon, 13 Jul 2026 11:18:59 GMT

QUESTION: Our company is an applicable large employer (ALE) that sponsors a group health plan covering eligible employees and their dependent children. We understand that the Affordable Care Act (ACA) requires us to offer coverage to dependents. At what point can we terminate a dependent child’s coverage as the child approaches age 26 without risking employer shared responsibility penalties?

ANSWER: To avoid employer shared responsibility penalties, an ALE must offer coverage to an employee’s dependent child (including a child who has been legally adopted or placed for adoption) through the last day of the month in which the child turns 26, not merely through the day before the child’s birthday. For this purpose, a dependent does not include a stepchild, a foster child, or a child who does not reside in the United States or a country contiguous to the United States and who is not a United States citizen or national (subject to the adopted-child exception), and a dependent does not include a spouse.

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

DOL Clarifies Scope of ERISA Application to Trump Accounts, Related Employer-Facilitated Contribution Programs

Neil Vicente — Mon, 29 Jun 2026 12:08:52 GMT

News Release

The DOL has issued a technical release clarifying that Trump Accounts (TAs) and Trump Account Contribution Programs (TACPs) generally will not constitute “employee pension benefit plans” under ERISA § 3(2). TAs are a type of individual retirement account (IRA) that may be established for eligible minors with contributions of up to $5,000 (as adjusted for inflation after 2027) permitted beginning July 4, 2026, including up to $2,500 of employer contributions excludable from an employee’s income under Code § 128. A TACP may also be offered through cafeteria plan salary reductions for contributions made to the TA of an employee’s dependent.

Because ERISA § 3(2) focuses on arrangements that provide retirement income to employees, and TAs generally provide tax-advantaged savings for dependents of employees rather than to employees themselves, the DOL concluded that TAs and TACPs generally would not constitute pension plans—even if fully or partially funded by employer contributions under Code § 128. The guidance also addresses two scenarios in which ERISA coverage could potentially arise:

Employee as TA beneficiary. A TA may benefit an employee (rather than a dependent), such as in the case of a 16- or 17-year-old employee. The DOL concluded that employer contributions to an employee’s TA during the growth period would not give rise to an ERISA-covered plan, provided that the employer: (1) ensures employee participation is completely voluntary; (2) does not impose conditions on the use of TA funds beyond those permitted under the Code; (3) does not make or influence investment decisions with respect to TA funds; (4) does not represent that the TA or TACP is an employee pension benefit plan or welfare benefit plan; and (5) receives no payment or compensation in connection with a TA.

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

The payroll superhero problem: What last-minute saves can reveal about risk and control gaps

Nageshwaran Gopal — Mon, 22 Jun 2026 16:09:05 GMT

When quick fixes become the norm, hidden compliance and operational risks grow

Highlights

Frequent last‑minute payroll fixes often signal weak processes, poor documentation, or overreliance on key individuals.
Reactive workflows increase the chance of compliance errors, missed deadlines, and audit exposure.
Standardized processes, better controls, and automation reduce reliance on “superheroes” and create more resilient payroll operations.

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

Why payroll’s ‘easy’ label is costing companies — and how leaders can take ownership ‘like a boss’

Nageshwaran Gopal — Mon, 22 Jun 2026 15:39:38 GMT

Why overlooked payroll processes can expose businesses to costly compliance failures

Highlights

Payroll errors often stem from fragmented processes, outdated systems, and inconsistent data handling.
Noncompliance can trigger penalties, audits, and reputational damage far beyond simple administrative mistakes.
Proactive controls and standardized workflows are essential to reduce risk and maintain regulatory confidence.

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

Payroll pulse: Navigating permanent establishment risk with remote workers in 2026

Neil Vicente — Mon, 15 Jun 2026 14:22:18 GMT

What triggers permanent establishment risk for remote workers?

Permanent establishment risk occurs when remote work creates a taxable business presence in another jurisdiction, triggering corporate tax and payroll obligations. Tax authorities now scrutinize four primary triggers:

Key PE risk triggers:

50% working-time benchmark: When an employee works more than half their time from another country over a 12-month period (per OECD’s 2025 Model Tax Convention update)
Revenue-generating activities: Regular business activities like contract negotiations or client relationship management conducted from a foreign location
Executive decision-making authority: Senior leaders making binding business decisions from remote locations that commercially benefit the company
Fixed place of business: Consistent use of a home office that serves business purposes beyond employee convenience

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

What Expenses Can Be Reimbursed Under a Qualified Educational Assistance Program?

Neil Vicente — Mon, 15 Jun 2026 14:09:49 GMT

QUESTION: If our company sets up a qualified educational assistance program, what expenses can the program reimburse? For example, can we limit reimbursements to courses that are related to our business?

ANSWER: The Code’s qualified educational assistance rules generally allow any form of instruction or training “that improves or develops the capabilities of an individual” to be reimbursed. The education can be part of a degree-granting program (including graduate-level courses), but it does not have to be. Reimbursable expenses include, but are not limited to, tuition, fees, and similar payments, and books. Employers may also provide educational assistance by paying an employee, or reimbursing the employee’s lender, for the principal and interest on a qualified education loan incurred by the employee for the employee’s education. Of course, there are some restrictions:

Education cannot relate to a sport, game, or hobby, unless it involves the employer’s business or is required as part of the student’s degree program.
Meals, transportation, and lodging cannot be reimbursed.
Supplies and equipment (other than textbooks) can only be reimbursed if they cannot be kept after the course is completed.

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

Payroll withholding Payments and returns- North Carolina

Yousef Ghanayem — Tue, 02 Jun 2026 19:17:45 GMT

Hello Everyone,

We started using direct deposit to make withholding payments for our payroll clients using ACS, I've called the department of revenue here in North Carolina to make sure that they have what they need, but every agent I spoke to said that the files they receive are wrong, and they contain both the returns and the payments.

I just wanted to ask about what is the best way to handle withholding filing an payments using ACS

On-Demand Pay, Off-Schedule Compliance: What Payroll Leaders Need to Know About Earned Wage Access

Nageshwaran Gopal — Mon, 25 May 2026 14:06:55 GMT

The numbers are hard to ignore. A record 55% of Americans say their financial situation is getting worse, up from 53% last year and 47% in 2024, marking the fifth consecutive year more Americans say their finances are worsening rather than improving, a trend last seen during the Great Recession. Some 67% of Americans say they live paycheck to paycheck, a lifestyle that spans income brackets, education levels, and professions. And nearly half say they are losing sleep over money worries, according to YNAB’s 2026 Money Mood Report.

For employers, that financial pressure does not stay at the door. PwC’s 2026 Employee Financial Wellness Survey reveals a workforce under sustained pressure, where day-to-day financial strain is undermining productivity, engagement, and long-term workforce stability.

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

Payroll Congress Day 4: Where Payroll Gets Tested and Compliance Gets Real

Nageshwaran Gopal — Mon, 25 May 2026 13:41:48 GMT

Compliance, Judgment, and Execution at Scale

Historically, payroll has been treated more as a back-office process until a disruption, a complex order, or a reporting change turns it into a control function with immediate consequences. That was a connective thread across the final day at PayrollOrg’s Congress 44^th annual Congress, where speakers focused less on abstract rules and more on what it takes to deliver compliant, accurate pay when the environment is unstable, the inputs are messy, or the timelines are unforgiving.

Several sessions highlighted the operational reality that payroll teams must keep pay moving while managing risk that is not fully within payroll’s control. In the workshop on payroll continuity amid cyber disruptions, presenters underscored why payroll is uniquely exposed because it sits at the intersection of statutory obligations, sensitive data, and employee trust, and they emphasized readiness steps such as manual process documentation, offline backups, and coordinated recovery planning. In the creditor garnishments session, speakers detailed how garnishment administration becomes a compliance exercise across jurisdictions, including determining which state’s laws apply and managing difficult state requirements that can complicate execution even when an order appears straightforward.

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

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.