Deferred Compensation Agreement Template For Self Employed In Tarrant
Category:
State:
Multi-State
County:
Tarrant
Control #:
US-00417BG
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.
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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. Deferred compensation plans are designed for state and municipal workers, as well as employees of some tax-exempt organizations.The New York City Deferred Compensation Plan has been with you throughout your working life and can continue with you throughout retirement. 457(b) plans allow you to make withdrawals at any age, provided that you leave the employer with whom you have the plan. A top hat plan is a type of employer-sponsored plan that is unfunded. The design of the plan is to provide deferred compensation to the eligible employee group. The New York State Deferred Compensation Plan is a State-sponsored employee benefit for State employees and employees of participating employers.