Tennessee HB0431 introduces a CEO Pay Disparity Tax Act, imposing a surcharge on companies with significant pay gaps between top executives and.
Tennessee HB0431, the CEO Pay Disparity Tax Act, imposes a surcharge on companies operating in Tennessee where the top executive's pay is at least 100 times the median income of employees. The surcharge adds an additional 0.1% to the excise tax rate on the company's net earnings. The Department of Revenue will create rules to implement this tax, which takes effect July 1, 2025.
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