Deferred Compensation Form For Independent Contractors In Hennepin
Category:
State:
Multi-State
County:
Hennepin
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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Nonqualified deferred compensation (box 15). You may either file Form 1099-MISC (box 7) or Form.Report distributions on Form 1099-R as is done in the case of a distribution from a qualified plan. Reporting require- ments include understanding which form to use and how to complete the form. Withholding requirements include the amount and timing of with-. If you have questions about the deferred compensation plan, please contact the Minnesota Deferred Compensation Plan at 1-800-657-. 5757. 4.