4 ms·
Can employers/employees work around this stupid cliffing kind regulation with optional deferred compensation? Let's say the cliff is 50k. You earn 55k/year.
by robrenaud 13y ago
Can employers/employees work around this stupid cliffing kind regulation with optional deferred compensation?
Let's say the cliff is 50k. You earn 55k/year. So you get paid 50k and opt to keep 5k in a deferred compensation stash that gets paid out sometime in the future (maybe when your baseline is sufficiently higher than 50k that's worth it?).
- twoodfin 13y agoYes, it's apparently possible: http://www.irs.gov/Businesses/Corporations/Nonqualified-Deferred-Compensation-Audit-Techniques-Guide-(02-2005) http://www.irs.gov/Businesses/Corporations/Nonqualified-Defe... Interestingly enough, the employer is required to withhold FICA taxes as soon as the deferral is made, if it's truly guaranteed future income.