Deferred Compensation Agreement Template For Self Employed In Hennepin
Category:
State:
Multi-State
County:
Hennepin
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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Contributions to 457(b) plans may include employee salary deferrals and employer contributions. The contributions are reported on Form W-2.This article highlights several of the main considerations for employers when they are operating, amending or terminating a NQDC plan. Complete a Deferred Compensation Plan In-Service Distribu- tion Form. The New York State Deferred Compensation Plan is a State-sponsored employee benefit for State employees and employees of participating employers.