Many salary reduction plans
go beyond the premium payment plan format and permit employees to reduce their salaries through a flexible spending account (FSA).
By making these reimbursements tax-free, what the salary reduction plan
does is to convert all of these expenditures that you would normally incur into "deductible" expenses--whether or not they normally would be allowed as a deduction.
Consolidated second quarter selling and administrative expenses declined 5% compared to the prior year primarily due to benefits realized from the salary reduction plan
implemented by the Company in the third quarter of fiscal year 2009, other comprehensive cost reduction efforts throughout the Company, lower bad debt expense and lower profit-based incentive compensation costs.
OTCBB:GGOX), a leading provider of electronic engines for the optically connected digital world, today announced the implementation of a companywide salary reduction plan
as part of the Company's ongoing efforts to reduce operations expenses.
New Mexico argues that the meaning of the term is dear and that a salary reduction agreement excludes arrangements such as New Mexico's in which the employees' participation in the salary reduction plan
is mandated by state statute.
employment tax treatment of payments for employment termination, taxation of transferred partnership interests and salary reduction plans
Beyond those exceptions, section 409A applies broadly to salary reduction plans
, supplemental employee retirement plans (SERPs), parachute payments, phantom stock plans, severance plans, insurance commissions, discounted stock options, certain SARs, non-excluded fringe benefits, etc.
To avoid immediate taxation, deferred compensation plans--which include salary reduction plans
, 401(k) wrap-arounds and supplemental executive retirement plans--executed after Dec.
The bill would increase the dollar limit on annual elective deferrals under Section 401(k) plans, Section 403(b) annuities, and salary reduction plans
in $1,000 annual increments until the limits reach $15,000 in 2005.
Other provisions would relieve top-heavy rules, streamline the reporting rules and the deduction rules for small businesses in order to afford them the opportunity to offer more generous defined contribution plans, eliminate the IRS user fees for small business plans and provide incentives for employers to establish salary reduction plans
that will automatically enroll employees.
Increase and index the current catch-up contributions, and allow catch-up contributions under all salary reduction plans
for anyone age 50 and older.
There are two primary types of deferred compensation plans: salary reduction plans
, which allow the individual to elect to defer some regular compensation, and supplemental executive retirement plans.