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Managing the Modern Workplace
V&E International Labor & Employment Resources

New Year's Resolutions for Modern Workplace Readers

If you’re a frequent reader of the Modern Workplace blog, there’s a good chance you’re involved in human resources and employee relations in some capacity, perhaps as in-house counsel, HR manager, or outside attorney or consultant. In keeping with a tradition for our blog, the Modern Workplace editorial staff has put together a set of New Year’s resolutions for our readers who can impact workplace policies and procedures for 2018.

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IRS Confirms that Partners Are Not Employees

The Internal Revenue Service recently issued guidance confirming its position that an individual cannot be treated as both an employee and a partner of the same entity (sometimes referred to as the “dual status” position). This guidance clarifies that employees of partnerships and certain limited liability companies (and, in some cases, their subsidiaries) who receive equity interests in their employer cease to be treated as employees for tax and benefit plan purposes, regardless of how small of an interest they receive and whether or not they have any management responsibility. This news often comes as an unwelcome surprise to employees, as well as to employers structured as partnerships and LLCs that grant equity-based compensation awards to attract and retain key employees. 

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Thomas H. Wilson

Thomas H. Wilson Partner

Christopher V. Bacon

Christopher V. Bacon Counsel

Sean Becker

Sean Becker Partner

Stephen M. Jacobson

Stephen M. Jacobson Partner

Martin C. Luff

Martin Luff Counsel

Lawrence S. Elbaum Partner