April 12, 2013
Health Insurance Providers Face Proposed $500k Deduction Limit on Pay
– Broc Romanek, CompensationStandards.com
This Skadden alert describes a new proposed IRS regulation providing guidance on the $500,000 deduction limit for compensation paid by certain health insurance companies to their employees – and analyzes its complexity. This will be a difficult provision as it has none of the exceptions of Section 162(m) as we know it – plus, you would be surprised at how many companies get brought into the definition of “health insurance provider” because of some entity in their controlled group.