2021 Withholding Tables

The Internal Revenue Service (“IRS”) issued Publication 15-T, which discusses 2021 wage-bracket and percentage method withholding tables, effective for wages paid on and after January 1, 2021.

Qualified Transportation Fringe and Commuting Expenses

The Treasury Department and IRS issued final regulations on the deduction for qualified transportation fringe ("QTF") and commuting expenses following changes made by the Tax Cuts and Jobs Act ("TCJA"). These final regulations address the TCJA's disallowance of the deduction for expenses related to QTFs provided to an employee of the taxpayer, including providing guidance and methodologies to determine the amount of QTF parking expenses that is nondeductible. The final regulations also address the TCJA's disallowance of the deduction for expenses of transportation and commuting between an employee's residence and place of employment.

IRS Guidance for Safe Harbor Plans

The IRS issued Notice 2020-86, which addresses certain provisions of the Setting Every Community Up for Retirement Enhancement (“SECURE”) Act and impacts certain safe harbor 401(k) and 401(m) plans (including 403(b) plans that apply the 401(m) safe harbor).

Notice 2020-86 is written in the form of questions and answers to assist small businesses and other employers that maintain safe harbor plans comply with the SECURE Act.  It is intended to assist taxpayers by providing guidance on particular issues while the Treasury Department and the IRS develop regulations to fully implement these provisions of the SECURE Act.