Deferred Compensation Agreement Template For Self Employed In Texas
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 parties agree to and acknowledge the following: a. A governmental retirement plan must meet certain minimum benefit or contribution standards to qualify as a public retirement system.It's designed to be a supplement to your pension and is an additional way to invest long-term directly from your pay. Deferred compensation refers to money received in one year for work performed in a previous year often many years earlier. Deferred compensation plans are designed for state and municipal workers, as well as employees of some tax-exempt organizations.