We specialize in converting most organizations' largest expenses (i.e., benefits and payroll) into income-producing assets and locking down their most talented executives. In many cases, we are successful in reducing excise tax exposure and positively impacting positive moral among top-tier talent. Once your Chief Financial Officer becomes aware of our techniques, he/she will immediately see how we are improving the financial strength of the organization's balance sheet and ensuring the long-term success.
Why Non-Profit Organization's with Executive(s) Earning in Excess of $1,000,000 Annually Should Call Us Today
As of December 22, 2017, most non-for-profit organizations who employee executives earning north of $1,000,000 annually or have excess parachute payments apart of their employment agreements could now be effected by new taxes that was included in the Tax Cuts and Jobs Act (TCJA) . TCJA adds a new Section 4960 to the IRC to impose an excise tax equal to 21 percent (the current corporate income tax rate) of the sum of (1) any remuneration paid by applicable tax-exempt organization for a taxable year with respect to employment of any covered employee in excess of $1million, plus (2) any excess parachute payments paid by such organization to any covered employee. The excise tax applies as a result of an excess parachute payment, even if the covered employee's remuneration does not exceed $1 million.
We have designed a solution that can mitigate this new excise tax for these organizations. By clicking this link, one of our top experts in this area will walk you through how to mitigate this new tax and significantly reduce your future executive retention expenses.
Why Most Power 5 Conference Athletic Department CFOs or Significant Donors There to Should Call Us Today
In today's competitive college sports environment coaches in many states have become the highest paid employees in their respective states where they coach. Compensation packages have become more lucrative in spite of this new tax imposed by the TCJA in 2017. Why is this and what does it mean for donors who fund many of these athletic programs?
First and foremost, we have found that change isn't easy for many of these administrations when it comes to mitigating this new tax. In its simplest form, the tax is applied in the manner. The first million dollars of remunerations are exempt and the 21% then applies to all dollars in excess of that first million. Therefore, for every million dollars of excess remunerations paid to an executive or coach, the institution is responsible for paying the IRS 21% or roughly $210,000 for every $1,000,000 of remunerations paid to the five (5) top highest-paid executives or coaches.
So what does that mean? Let's look at a coach that is earning $11 million annually. The first million of remunerations is exempt from the tax. However,the next $10,000,000 is taxed at 21%. In this case, the institution (not the coach) is responsible to pay an additional $2.1 million to the IRS. This means the actual cost to have that particular coach or executive leading their athletic program is actually $13.1 million not $11 million annually.
We have proven means to mitigate the majority of this new excise tax on behalf of these organizations. If you are a donor or staff at one of these schools we are happy to discuss with you. Simply, click this link and schedule a call with our top experts on this subject.
Here is link where Derek Miser was interviewed on the WNML 99.1 "The Sports Animal" with Jimmy Hyams.