Payroll professionals should be aware of specific Internal Revenue Service reporting and tax requirements for nonqualified deferred compensation plans, two payroll professionals said May 10.
Nonqualified deferred compensation plans are elective plans that allow employees to defer compensation from one tax year to another and entitle them to that compensation, said Fred Basehore, Senior Director of Payroll Tax and Compliance at Guidehouse. Unlike qualified deferred compensation plans, which are regulated under Section 401(a) of the Internal Revenue Code, nonqualified deferred compensation plans are regulated under IRC Section 409A.
Nonqualified plans can vary, added Basehore, who is also a member of ...
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