Cryptocurrency in Employee Benefits and Executive Compensation Arrangements

Note: CPE credit is not offered on this program

Recording of a 90-minute premium CLE video webinar with Q&A

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Conducted on Wednesday, August 17, 2022

Recorded event now available

or call 1-800-926-7926
Course Materials

This CLE course will provide executive compensation and corporate attorneys, and ERISA retirement plan fiduciaries, with an in-depth analysis of the challenges, risks, and planning considerations for providing compensation in cryptocurrency in executive compensation arrangements, and access to cryptocurrency investment options in retirement plans. The panel will discuss long-term incentive plan design, the pros and cons of compensation programs that pay employees in cryptocurrency and other digital assets, IRS and DOL guidance, and other cryptocurrency-related compensation issues.

Description

Several alternatives are available to companies for providing compensation and incentives to their executives and key employees. As cryptocurrency is increasingly accepted, some employers are considering cryptocurrency as part of compensation and incentive arrangements. However, these arrangements present intricate design, structuring, and tax challenges, including how to structure compensation and incentive arrangements with cryptocurrency, the application of Section 409A and other regulations, and other key items to consider.

Cryptocurrency as compensation or an incentive presents complex design and structuring challenges. Counsel must consider requirements under the Fair Labor Standards Act (FLSA), and state and local wage laws to effectively structure compensation that includes cryptocurrency for key executives and employees. Also, the IRS considers cryptocurrency "property" subject to capital gains tax rates. The IRS issued guidance confirming that any payment to employees in such currency must be reported on a W-2 based upon the currency's value at the time it was delivered to the employee. Therefore, cryptocurrency compensation is subject to income tax and withholdings.

Listen as our experienced panel of executive compensation and benefits practitioners discusses long-term incentive plan design, the pros and cons of compensation programs paying employees in cryptocurrency and other digital assets, IRS and DOL guidance, and other cryptocurrency-related compensation issues.

READ MORE

Outline

  1. Overview of IRS and DOL treatment of cryptocurrency
  2. FLSA requirements and DOL rules; the form of payment
  3. State and local wage law considerations
  4. Designing compensation and incentive plans inclusive of cryptocurrency
  5. Best practices for executive compensation and corporate attorneys and retirement plan fiduciaries

Benefits

The panel will review these and other key issues:

  • What are the critical considerations for including cryptocurrency in a compensation or incentive plan?
  • What is the DOL's position on cryptocurrency investment options in retirement plans?
  • What are the rules and requirements for the form of payment under the FLSA?
  • What are the potential tax ramifications of including cryptocurrency as compensation?
  • How do Section 409A and Section 83 apply?

Faculty

Bruno, Anne
Anne L. Bruno
Member
Mintz Levin Cohn Ferris Glovsky and Popeo

Ms. Bruno is a seasoned attorney whose practice spans several areas of corporate and employment law. She has extensive...  |  Read More

Capezza, Michelle
Michelle Capezza
Of Counsel
Mintz Levin Cohn Ferris Glovsky and Popeo

Ms. Capezza is an accomplished employee benefits and executive compensation lawyer with more than 25 years of...  |  Read More

Klimpl, Timothy
Timothy S. (Tim) Klimpl
Counsel
Carmody Torrance Sandak & Hennessey

Mr. Klimpl is a seasoned attorney with experience providing ERISA advice and related services to a variety of plan...  |  Read More

Access Anytime, Anywhere

Strafford will process CLE credit for one person on each recording. All formats include course handouts.

To find out which recorded format will provide the best CLE option, select your state:

CLE On-Demand Video

Download