Deferred Compensation Form For Independent Contractors In Clark
Category:
State:
Multi-State
County:
Clark
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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Submit your forms as follows: 1) Inquries and questions can be sent via email to the Plan. An eligible deferred compensation plan under IRC Section 457(b) (or "section 457 plan") must meet the written plan document requirements.Form 1099-B reports any distributions from a deferred compensation account. Independent contractors also receive Form 1099-MISC, but the reports are to be prepared in a slightly different manner as discussed later. Deferred compensation is a plan that allows employees to delay receiving a portion of the compensation earned in one tax year to a future tax year. Yes, the employer could allow independent contractors to participate in a 457b plan, but they are not required to do so.