[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.grossmcginley.com\/resources\/blog\/new-tax-law-limits-employer-tax-deductions\/#BlogPosting","mainEntityOfPage":"https:\/\/www.grossmcginley.com\/resources\/blog\/new-tax-law-limits-employer-tax-deductions\/","headline":"Employer Tax Deductions Limited by New Tax Law","name":"Employer Tax Deductions Limited by New Tax Law","description":"The Tax Cuts and Jobs Act of 2017 impacts employers in a number of ways, including the […]","datePublished":"2018-01-26","dateModified":"2021-03-03","author":{"@type":"Person","@id":"https:\/\/www.grossmcginley.com\/resources\/author\/loren-speziale\/#Person","name":"Loren L. Speziale","url":"https:\/\/www.grossmcginley.com\/resources\/author\/loren-speziale\/","identifier":17,"image":{"@type":"ImageObject","@id":"https:\/\/www.grossmcginley.com\/wp-content\/uploads\/2021\/02\/Loren-L-Speziale-headshot-150x150.jpg","url":"https:\/\/www.grossmcginley.com\/wp-content\/uploads\/2021\/02\/Loren-L-Speziale-headshot-150x150.jpg","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Gross McGinley, LLP","logo":{"@type":"ImageObject","@id":"https:\/\/www.grossmcginley.com\/wp-content\/uploads\/2017\/10\/logopng-00436945-e1531508982151.png","url":"https:\/\/www.grossmcginley.com\/wp-content\/uploads\/2017\/10\/logopng-00436945-e1531508982151.png","width":600,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/www.grossmcginley.com\/wp-content\/uploads\/2018\/01\/employer-tax-deductions.jpg","url":"https:\/\/www.grossmcginley.com\/wp-content\/uploads\/2018\/01\/employer-tax-deductions.jpg","height":800,"width":800},"url":"https:\/\/www.grossmcginley.com\/resources\/blog\/new-tax-law-limits-employer-tax-deductions\/","about":["Blog"],"wordCount":308,"keywords":["Employment Law","Tax Law"],"articleBody":"The Tax Cuts and Jobs Act of 2017 impacts employers in a number of ways, including the elimination certain employer tax deductions. Most notably, the new tax law eliminates deductions such as expenses paid or incurred for the following:\tBusiness entertainment, amusement or recreation;\tMembership dues for the benefit of the employee;\tCertain qualified transportation and commuting fringe benefits; and\tSettlement of a sexual harassment claim if the payment is subject to a nondisclosure agreement.The Act limits employer tax deductions for costs associated with providing an employee an achievement award for tangible personal property. \u201cTangible personal property\u201d excludes cash, cash equivalents, gift cards, gift coupons, gift certificates, vacations, meals, lodging, tickets to theater or sporting events, stocks, bonds, other securities, and similar items.The new law also eliminates the exemption for commission-based and performance-based pay from the one million dollar compensation cap applicable to \u201ccovered employee\u201d of a publicly held corporation. The law also expands the definition of \u201ccovered employee\u201d and extends the definition of \u201cpublicly held corporation.\u201dHowever, the Act does grant eligible employers a federal tax credit for paid family and medical leave provided to certain employees. It also repeals the right of an employee, who is not a member of the Armed Services on active duty, to a deduction for unreimbursed moving expenses or income exclusion for moving expenses reimbursements. The new law eliminates the right of employees under the prior law to take certain job-related, miscellaneous itemized deductions, subject to a two-percent (2%) floor, such as home office expense, union dues and expenses, work clothes, licenses and regulatory fees.It is important to note that while the Act also repeals the individual mandate under the Affordable Care Act, the employer mandate remains in place.Attorney Loren Speziale counsels businesses in all areas related to employment law including policies and procedures, employment agreements, benefits, and more."},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Resources","item":"https:\/\/www.grossmcginley.com\/resources\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"Blog","item":"https:\/\/www.grossmcginley.com\/resources\/\/blog\/#breadcrumbitem"},{"@type":"ListItem","position":3,"name":"Employer Tax Deductions Limited by New Tax Law","item":"https:\/\/www.grossmcginley.com\/resources\/blog\/new-tax-law-limits-employer-tax-deductions\/#breadcrumbitem"}]}]