How can organizations adopt a human-centric approach to artificial intelligence (AI) use in the workplace? In this SHRM article, Kathleen Pearson, McDermott’s chief human resources officer, discusses the Firm’s adoption of the emerging technology and how she’s brought cross-functional teams together to explore AI use cases.
How should the chief executive officer (CEO) respond to the host of internal and external challenges facing their business? In this Forbes article, Michael Peregrine suggests the CEO adopt a mindset rooted in rational confidence in the company’s future and in the leadership’s decision-making.
Most responsible corporate boards took measures to address codes of conduct issues and sexual harassment in the wake of the “MeToo” movement. However, a flurry of recent stories involving misbehaving CEOs suggests otherwise. In this Forbes article, Michael Peregrine says these scandals should be a wake-up message to corporate boards.
The Biden administration recently announced a list of Medicare-covered drugs that will be subject to price negotiations. The administration said the negotiations—a reality thanks to the Inflation Reduction Act—will benefit nearly nine million seniors.
However, according to this Insider article, some drug-policy analysts seem unconvinced by the administration’s claims.
New York’s Adult Survivors Act and Child Victims Act allow survivors of alleged sexual abuse to bring civil claims against their offenders and public and private institutions for a limited time. In this New York Law Journal article, Lisa A. Linsky, Greer Griffith, Elizabeth Rodd, Max J. Kellogg, Kelly Shami and Jacqueline Winters examine and clarify the confusing patchwork of statutes of limitations now in play under these new sexual abuse laws.
Retirement plan sponsors need to utilize updated Form W-4P (for periodic pension and annuity payments) and new Form W-4R (for nonperiodic payments and eligible rollover distributions) for income tax withholding elections beginning January 1, 2023. As we near the end of 2022, plan sponsors should ensure that their retirement plan systems and vendors are on track to implement the new federal tax withholding election forms no later than January 1, 2023.
As background, in 2017, changes made by the Tax Cuts and Jobs Act (TCJA) required the Internal Revenue Service (IRS) to revise the withholding tables and develop new forms to use to withhold taxes from periodic payments. These forms are used by qualified and non-qualified retirement plans for participants to request withholding on benefit payments that commence in 2023 or later. In 2021, the IRS revised the Form W-4P into the two forms noted above: revised Form W-4P, which is now used only to request withholding on periodic pension and annuity payments, and new Form W-4R, which is used to request additional withholding on nonperiodic payments and eligible rollover distributions. The US Department of the Treasury and the IRS received numerous questions on the new forms, which caused the IRS to delay the implementation until January 1, 2023.
Recipients of periodic retirement payments can give payers a Form W-4P to make or change a withholding election or to elect not to have withholding apply. A Form W-4P stays in effect until the payment recipient changes or revokes it. Form W-4R is required for all nonperiodic retirement payments, such as a lump sum payment, if the recipient wants to increase or decrease withholding from the applicable default withholding percentage.
The revised Form W-4P has a few changes. The significant changes include updates to the marital category, modifications to the reporting of other sources of income, replacement of allowances with dependent credits and addition of a calculation to report a new withholding amount. The new Form W-4R allows a payee to choose a different rate of withholding by entering a rate between 0% and 100%. However, if no amount is selected, plan sponsors must withhold at a flat 10% rate (or 20% if eligible) from nonperiodic payments.
For more information on these tax and employment benefits issues, please contact your McDermott lawyer or the authors listed below.
Marchan Clark, a law clerk in the Washington, DC, office, also contributed to this article.
The US Supreme Court will hear a whistleblower’s False Claims Act suit that the US Department of Justice (DOJ) had previously moved to throw out. In this Law360 article, McDermott Partner Tony Maida offers perspective about the DOJ’s 2018 Granston memo.
“It does not make sense for the government to need to justify its decision to dismiss a case brought on its behalf,” Maida said. “Reducing the ability of DOJ to dismiss cases would erase some of those positive results of the Granston memo.”
The COVID-19 pandemic has dramatically changed how governments confront issues as varied as global taxation, emigration and real estate. In this article published in Law.com, McDermott partner Nicholas Holland contributes his insight into these trends (and others) that are sweeping across Hong Kong, the United States, the United Kingdom and the Cayman Islands.
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