News & Analysis as of September 8, 2025

Deferred Compensation

+ Follow

Income taxes are taxes that are collected on the individual earnings of persons or entities. Depending on the jurisdiction, income taxes are calculated and collected in a variety of ways. Some tax systems collect income taxes based on a progressive scheme, while others may utilize a proportional or regressive framework. less -

FICA Tax: Navigating the Nonqualified Deferred Compensation Special Timing Rule

Proskauer - Employee Benefits & Executive... on 9/4/2025

Compensation is generally subject to federal income tax and FICA tax when compensation is actually paid to an employee. However, nonqualified deferred compensation (NQDC) may be subject to FICA taxation before federal income...more

The Special Timing Rule for Taxation of Nonqualified Deferred Compensation

Dorsey & Whitney LLP on 2/14/2024

For an employee who is a U.S. taxpayer, both the employer and the employee are liable for a portion of Social Security taxes and Medicare taxes (collectively referred to as “FICA” taxes) on the employee’s compensation. ...more

Our D.I.V.O.R.C.E. … Is Going To Be Tricky For My Employer To Handle

Holland & Hart - The Benefits Dial on 11/3/2020

Nonqualified deferred compensation plans often include anti-assignment language prohibiting a plan participant from assigning benefits to anyone. Because top-hat plans are exempt from most aspects of ERISA including the...more

How Do I Report Non-Qualified Plan or Severance Payments to a Former Employee? Hint: You Should Probably Use a W-2, Not a 1099!

Foley & Lardner LLP on 7/10/2018

Employers commonly make payments to former employees for a number of reasons. Two of the more routine payments are those from a non-qualified deferred compensation plan (such as payments from a supplemental executive...more

IRS Updates Guide to Auditing Nonqualified Deferred Compensation Plans

Bradley Arant Boult Cummings LLP on 7/20/2015

The Internal Revenue Service (IRS) recently updated its “Nonqualified Deferred Compensation Audit Techniques Guide.” The Guide provides a framework for the IRS to audit nonqualified deferred compensation (NQDC) plans. Since...more

This Time The Employer Is Responsible For The Withholding Error

Stinson - Benefits Notes Blog on 8/21/2013

I recently blogged here about a situation involving Verizon withholding US taxes from payments to former employees who never lived or worked in the U.S....more

6 Results

View per page

Page: of 1