Deferred Compensation Agreement Template For Real Estate In Fairfax
Category:
State:
Multi-State
County:
Fairfax
Control #:
US-00417BG
Format:
Word;
Rich Text
Instant download
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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This form will disclose the amount of taxes not exempted, the amount of taxes deferred of each installment, and the applicable interest rate. Virginia Code § 64.2-1208 allows a "reasonable compensation" to a fiduciary for services rendered in the administration of an estate.This manual is intended to assist persons who are involved in the administration of a decedent's estate in Virginia. Deferred compensation, such as 401-K plans and pension plans, are still subject to Village of Fairfax Earnings Tax.