Deferred Compensation Agreement Template For Independent Contractors In Michigan
Category:
State:
Multi-State
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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A deferred compensation agreement is an agreement between a company and an employee that withholds paying some of the employee's salary. To participate in the Plan, each Eligible Employee shall properly complete a Voluntary Salary Deferral Agreement,and other application requirements.The Deferred Compensation Option is a competitive, easy-to-manage benefit you can offer your employees at no additional cost to your schools. Michigan law has strict employee classification laws. Use our free independent contractor template compliant with state laws. The Deferred Compensation Plan is a voluntary, supplemental retirement savings program established pursuant to Internal Revenue Code Section 457(b).