- NY Credits : 6.0
- TX Credits : 6.0
- IRS Enrolled Agent Credits : Federal Tax/Tax Related Matters - 6.0
Executive compensation plans are helpful in attracting and retaining talented employees. This course is designed to provide an explanation of these plans and to simplify some of the complex requirements for establishing and maintaining such plans. This program provides an overview and understanding of the various methods of compensating employees on a tax-free or tax-deferred basis. The materials describe each method, each type of plan, and the legal requirements for compensation. The deferred compensation plans discussed are all nonqualified deferral arrangements. Many of the provisions in the Employee Retirement Income Security Act of 1974 (ERISA) are also covered. NOTE: This course has been updated for the relevant 2018 provisions of the Tax Cuts and Jobs Act and Bipartisan Budget Act, when and if applicable.
Upon successful completion of this course, the user should be able to:
recognize rules and requirements for deferred compensation plans, characteristics, requirements, and proper tax treatment of restricted value stock plans, nonstatutory and incentive stock options, stock appreciation rights, phantom stock plans, performance programs, performance cash plans, and parachute payments, reporting and disclosure aspects of ERISA, and rules and regulations regarding withholding of income and employment taxes on deferred compensation;
identify basic structure and advantages of nonqualified deferred compensation plan; and
determine impact of IRC Sec. 409A on nonqualified deferred compensation plans, recognize purposes and requirements of rabbi trusts, secular trusts, excess benefit plans, and supplemental executive retirement plans, and timing and amount of income recognizable by an employee under general rules of IRC Sec. 83 or when an IRC Sec. 83(b) election is made.