Deferred Compensation Examples In Cook
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State:
Multi-State
County:
Cook
Control #:
US-00417BG
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Word;
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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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A look at the pros and cons of adding deferral choices to director compensation programs. Deferred compensation is part of an employee's salary that is not paid out or taxed as income until a future date, usually at retirement.Cook County offers a Section 457 deferred compensation plan as a tax-deferred method for you to save for retirement. Some deferred compensation contracts provide that benefits are payable immediately if an employee dies or becomes disabled during the eligibility period. "Deferred Compensation" means as to a Participant the amount of Deferral Contributions,. Deferred compensation allows employees to defer payment of an agreed-upon portion of their earned income to a future date, usually retirement. Individual employees voluntarily defer a portion of their annual compensation (e.g. I wish to defer payments to a later date. • If selected, proceed to the Authorization section.