Deferred Compensation Plan For Small Business In Phoenix
Category:
State:
Multi-State
City:
Phoenix
Control #:
US-00418BG
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 PLAN consists of the provisions set forth in this document, and is applicable to each PUBLIC EMPLOYEE who participates in the PLAN. Choose a Plan Provider: Select a provider that offers various investment choices, administrative services, and employee education.Deferred compensation plans are designed for state and municipal workers, as well as employees of some tax-exempt organizations. If you need assistance establishing your business' retirement plan in AZ, the Mesa small business lawyers at JacksonWhite can walk you through the process. A nonqualified deferred compensation plan can reduce your taxable income, but there are risks to consider. Deferred compensation refers to money received in one year for work performed in a previous year often many years earlier. Deferred compensation plans are basically divided into two types: qualified and nonqualified.