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The oldest millennials are approaching a new money milestone: their high-earning years.
After two recessions and a world-changing pandemic, the arrival of the high-earning years for millennials born in the 1980s are around the corner. Yet data suggest this phase of life might not provide the financial security other generations found at the same age. READ MORE
The coronavirus pandemic has transformed the professional lives of nearly every American. Many workers, for instance, work their jobs remotely. Data from a Gallup Panel noted that 62% of employed Americans currently work from home. But while working from home is becoming increasingly common, it also comes with its own set of challenges: homeschooling kids, barking dogs and spouses who wander willy-nilly in and out of frame during Zoom meetings.
Of course, these challenges pale in comparison to those who are out of jobs entirely. And although unemployment has since dropped down below 10%, it's still much higher than it was before the pandemic. READ MORE
Just three percent of the nation's small businesses would see a tax increase under U.S. President Joe Biden's plan to tax the nation's highest earners to help fund a $3.5 trillion spending bill, a new U.S. Treasury analysis shows.
The Biden administration is expected to tout the findings of the report in a virtual meeting on Thursday with a Pennsylvania small business. Democrats in Washington hope to overcome intra-party squabbles to pass the president's signature spending plans, aimed at climate initiatives and expanding the social safety net. READ MORE
In June the Internal Revenue Service released an updated Nonqualified Deferred Compensation Audit Technique Guide. This updated Guide replaces the initial Guide published in 2015. While it is too early to say whether the release of the updated guidance signals increased audit activity by the Service in the nonqualified plan space, plan sponsors of nonqualified deferred compensation plans may want to consider reading the updated guidance to re-familiarize themselves with the underpinnings of Section 409A of the Code. READ MORE
A new report out Tuesday from the marketing and sales tracking platform Salesforce gives a sense of just how hard it’s been for small businesses to attract new hires. They’re offering everything from bonuses to flexible work schedules. And, almost a third of businesses surveyed say that they’ve increased wages significantly. That can be hard on those businesses, but as some economists point out, it’s also a signal that there’s not so much a shortage of labor, but more a shortage of well-paying jobs. READ MORE
If you find yourself struggling to pay bills despite a steady income, you may be simply be getting priced out by the high cost of living in your state or metropolitan area.
An updated tool from the Massachusetts Institute of Technology is helping Americans determine whether a person’s income is enough to live comfortably in their area. READ MORE
More than 100 million U.S. households, or 61% of all taxpayers, paid no federal income taxes last year, according to a new report.
The pandemic and federal stimulus led to a huge spike in the number of Americans who either owed no federal income tax or received tax credits from the government. According to the Urban-Brookings Tax Policy Center, 107 million households owed no income taxes in 2020, up from 76 million — or 44% of all taxpayers — in 2019. READ MORE
The impact of Covid-19 on where, when and how America works has been no less than seismic.
For some, it was a silver lining: no commute, lower expenses for everything from driving to dry cleaning and more time with family. With proximity less of a priority, many migrated from cities to suburbs in search of homes big enough to accommodate remote work and school. Initially, employees encouraged the shift, using technology to mimic in-person connectivity and reassuring customers, shareholders and lenders that they could remain productive and profitable in spite of the upheaval. READ MORE
Earlier this month, tech firm Google told its employees their pay will be lowered if they switch to working from home permanently and the remote location has lower labor costs than where their former offices are located. READ MORE
In the months after President Donald Trump signed the Tax Cuts and Jobs Act in December 2017, some tax professionals grew giddy as they discovered opportunities for their clients inside a law that already slashed rates for corporations and wealthy individuals. READ MORE
Institutional Shareholder Services (ISS) has launched its Annual Benchmark Policy Survey (available here) along with a separate Climate Policy Survey (available here), signaling potential changes to voting policies for 2022. Topics covered in the Annual Policy Survey include non-financial environment, social and governance (ESG) performance metrics in executive compensation plans, racial equity audits, virtual-only annual shareholder meetings, CEO compensation and votes on SPAC transactions. The Climate Policy Survey is focused on climate transition policies and board oversight of climate change risk. The surveys will inform ISS’s annual proxy voting policy updates. READ MORE
In recent years, the number and value of so-called “de-SPAC” transactions have increased sharply. De-SPAC transactions are an alternative method of going public that may be faster and less costly than a traditional IPO. The typical de-SPAC transaction involves a publicly traded special purpose acquisition company (SPAC) that merges with a target private operating company, with the result that the operating company becomes publicly traded. READ MORE
Bill Ackman’s troubled SPAC was hit with a lawsuit Tuesday alleging the blank-check company promised “staggering compensation” to directors and asking that the entity’s special status be revoked. READ MORE
A deferred compensation plan allows you to delay receiving part of your compensation until a later date. These retirement plans are offered by certain employers to a select group of workers. “Deferred compensation plans are typically designed for high earners, like executives, in order to allow them to push off receiving a portion of their compensation and instead receive that compensation with earnings at a later date,” says Jarred Wilson, vice president and consulting actuary at Segal, an employee benefits consulting firm, in the New York City area. READ MORE
Average pay for workers in restaurants and supermarkets hit $15 an hour for the first time in U.S. history, according to a report in the Washington Post. The bump, which also extends to other workers in food service industries, like butchers and fishmongers, comes amidst one of the most significant periods of accelerated wage growth since the 1980s, and marks a rare bit of positive news for millions of workers who’ve been hit especially hard by the pandemic. READ MORE
AppleApple insists it does not have a problem with pay inequality. Skeptical Apple employees have been trying to verify that claim by sending out informal surveys on how much people make, particularly as it relates to women and underrepresented minorities. But the company has shut down three of those surveys, citing stringent rules on how employees can collect data. Now, multiple labor lawyers tell The Verge the company may be violating worker protections: the surveys can be considered a form of labor organizing — under US law, employees have the right to discuss pay. READ MORE
Most people agree that executive pay should reflect their firm’s progress on diversity. That’s easier to say than to do. Measuring financial performance objectively is pretty straightforward, and scoring climate credentials isn’t the headache it once was. But rewarding inclusion will necessarily be subjective. It’s unclear investors are ready to trust corporate boards to exercise such judgement given their track record of excessive generosity. READ MORE
Google employees based in the same office before the pandemic could see different changes in pay if they switch to working from home permanently, with long commuters hit harder, according to a company pay calculator seen by Reuters.
It is an experiment taking place across Silicon Valley, which often sets trends for other large employers. READ MORE
For many people, 2020 was a challenging year. The COVID-19 pandemic and resulting economic fallout caused millions of American workers to lose their jobs or to have their hours cut. Yet not everyone struggled.
There were over 100 CEOs who made over $19 million in 2020 in salary, bonuses, stock awards, and other forms of compensation. These executives ran some of the largest corporations in the country. READ MORE