Self Study: Employee Compensation and Benefits 2022

Overview

This course is available until April 30, 2025.

The various ideas, methods and techniques to optimize the overall compensation package for key employees and principals are examined in this mini-course. Generally, businesses may deduct employees’ pay including wages, salaries and other perks. Certain fringe benefits that can provide an unusually tax-favored manner of supplementing compensation are described and evaluated. In addition, equity participation is explored through stock sales, repurchase agreements, incentive stock options, ESOT’s, stock options and bonuses. Finally, deferred compensation arrangements are investigated. The goal of this mini-course is to provide participants with a working knowledge of the types of compensation necessary to structure a compensation package minimizing tax liabilities and cost.

Highlights

• Wages, salary and pay
• Tests for deducting pay to employees
• Selected types of compensation
• Payroll taxes
• Selected fringe benefits
• Interest-free & below-market loans
• Equity participation
• Advantages of nonqualified deferred compensation
• Funded company account plans
• Segregated asset plans

Objectives

• Identify the common-law rules used by the IRS to determine whether a person is an employee for purposes of FICA, FUTA and federal income tax withholding.
• Recognize employee and officer compensation deductibility factors and the related employment taxes and reporting obligations to ensure compliance with regulations.
• Identify fringe benefits specifying those that provide deductible incentive-based employee compensation.
• Specify the equity incentive opportunities available to employers showing the variety, tax treatment and use of stock plans.
• Recognize the use of deferred compensation agreements to attain compensation and retirement objectives.

Notice

Downloadable PDF