Deferred Compensation Plan For Non-employee Directors In Clark
Category:
State:
Multi-State
County:
Clark
Control #:
US-00418BG
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.
Free preview
Form popularity
More info
Payments of NQDC to non-employees (such as independent directors) generally are reported under the Form 1099 series. The Deferred Compensation Plan is not an investment adviser and is not holding itself out as such.Additionally, a PDF copy of the response must be e-mailed to James Reeves: james. Before implementing a nonqualified deferred compensation plan, employers should consider the benefits and tax and compliance consequences. Some deferred compensation contracts provide that benefits are payable immediately if an employee dies or becomes disabled during the eligibility period.