Deferred Compensation Form For Independent Contractors In Travis
Category:
State:
Multi-State
County:
Travis
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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Submit your forms as follows: 1) Inquries and questions can be sent via email to the Plan. Similarly, if any distributions were subsequently paid to directors from your co-op's general assets, a Form 1099-NEC must be provided to those participants.Deferred compensation refers to money received in one year for work performed in a previous year often many years earlier. Deferred compensation is a plan that allows employees to delay receiving a portion of the compensation earned in one tax year to a future tax year. Only individuals who perform services for the entity, either as employees or independent contractors, may be participants in a section 457 plan. Independent contractors also receive Form 1099-MISC, but the reports are to be prepared in a slightly different manner as discussed later.