Deferred Compensation Agreement Template For Small Business 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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The Deferred Compensation Option is a competitive, easy-to-manage benefit you can offer your employees at no additional cost to your schools. A deferred compensation agreement is an agreement between a company and an employee that withholds paying some of the employee's salary.This booklet describes the University of Michigan 457(b). Deferred Compensation Plan. A deferred compensation plan is any plan that withholds a portion of an employee's pay until the end of the deferral period. To qualify for the Michigan pension subtraction, the distributions must meet the requirements set forth in the relevant section of the IRC. 1.1 Establishment of Plan.