A provision in the American Rescue Plan Act (ARPA), signed into law March 11, will increase the number of employees subject to Internal Revenue Code Section 162(m)'s limit on corporation's ability to deduct executive compensation.

Section 162(m) generally prohibits tax deductions by publicly traded companies on the portion of covered employees' pay that exceeds $1 million per year. Currently, covered employees are the chief executive officer, chief financial officer, and the three next-highest-compensated individuals. READ MORE