Deferred Compensation Form For Independent Contractors In Salt Lake
Category:
State:
Multi-State
County:
Salt Lake
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 first step is to have the contractor complete Form W9, Request for Taxpayer Identification Number and Certification. Yes, the employer could allow independent contractors to participate in a 457b plan, but they are not required to do so.To register and access employer information, you must first create an account using your e-mail address and user created password. Deferred Compensation Plan (if applicable). You may contribute the maximum less the total amount you have contributed during the current calendar year. For tax years beginning in 2020 or later, the deferrals are reported on Form 1099MISC, box 12. Create a Plan Document: Establish the terms of your plan, including contribution limits, investment options, and loan provisions.