Deferred Compensation Agreement Template For Small Business In Utah
Category:
State:
Multi-State
Control #:
US-00417BG
Format:
Word;
Rich Text
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Description
Deferred compensation is an arrangement in which a portion of an employee's income is paid out at a date after which the income is actually earned. A Deferred Compensation Agreement is a contractual agreement in which an employee (or independent contractor) agrees to be paid in a future year for services rendered. Deferred compensation payments generally commence upon termination of employment (e.g., retirement) or death or disability before retirement. These agreements are often geared toward anticipated retirement in order to provide cash payments to the retiree and to defer taxation to a year when the recipient is in a lower bracket. Although the employer's contractual obligation to pay the deferred compensation is typically unsecured, the obligation still constitutes a contractual promise.
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Obtain the necessary forms for a deferred compensation agreement, including the employee's acknowledgement of the agreement and an IRS Form W-4P. A deferred compensation agreement is an agreement between a company and an employee that withholds paying some of the employee's salary.Deferred compensation agreements are usually reserved for key talent or highly compensated employees. Learn about common tax and Form 990 reporting issues associated with nonqualified deferred compensation arrangements. Complete the information requested in the Verification of Service and Salary (Form. Use this form to select how your existing Utah Retirement Systems (URS) 401(k) or 457 Plan is invested.