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Norah L. Jones quoted in article “New Tax Concerns for Non-Profits and Their Million-Dollar Employees”


Below is an excerpt:

The Tax Cuts and Jobs Act of 2017 provides a new wrinkle that public universities and other non-profits must consider when recruiting and retaining employees who receive $1 million or more in annual compensation.


Effective for years beginning after December 31, 2017, the law does not provide a "phase-in" period. Jones states, "This means that most employers are subject to the tax right now and need to work with HR to start planning if they have employees who receive more than $1 million in annual compensation. There's not a lot of room—no safe harbor—for arranging employee agreements. The biggest implication of this law that employers need to know is that they are going to pay this tax."